HKEx Participantship & Trading Right Application

Overview

In order for any broker-dealer to operate a brokerage business for products available on HKEX, use the trading facilities of The Stock Exchange of Hong Kong Limited (Stock Exchange) and/or Hong Kong Futures Exchange Limited (Futures Exchange), it must be admitted and registered as an Exchange Participant of that Exchange.

There are three types of exchange participantship:

^lTypes of Exchange Partnership	Details
Stock Exchange Participants, under Stock Exchange	Securities product Entitled to deal in securities products such as equity securities, equity warrants, Exchange Traded Products, derivative warrants and Callable Bull/Bear Contracts, etc.
Stock Options Exchange Participants, under Stock Exchange	For brokers that intend to offer stock options brokerage services Stock Exchange has two types of options participantship: Options Trading Exchange Participant (OTEP) and Options Broker Exchange Participant (OBEP) OTEP can directly trade stock options through HKATS, the automated trading system operated by Hong Kong Futures Exchange Limited OBEP can only trade stock options through an OTEP
Futures Exchange Participants, under Futures Exchange	All futures and options, with the exception of stock options

Source: Guide to Becoming an Exchange Participant

An Exchange Participant must also hold at least one Trading Right in the Stock Exchange or Futures Exchange. All new Trading Rights are issued by the respective exchanges and are non-transferable.

How Alles Helps

Alles advises broker-dealers who intends to operate a brokerage business for products available on HKEx on the application for participantship and trading rights.

Here are frequently asked questions from our clients:

What types of exchange participantship are required for my business?
What is the admission criteria?
How can I obtain clearing facilities?
What are the operational requirements?

Our experts will provide a hassle-free experience in the Participantship & Trading Right Application, covering the following:

Prepare and draft application documents, including operation and risk control plan
Make submissions to the HKEx in response to the queries raised;
Handle correspondence with the HKex; and
Provide other personalized professional services

Contact Us

You are welcomed to schedule a call with us so we can offer customised services that best fit your needs.

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