Trading and Clearing Platforms

Overview

We represent operators of electronic trading platforms and clearing systems. Our work in this area is part of our Financial Services Regulatory practice, for which we have been consistently recognized as an outstanding, leading and recommended practice by independent editorial publications, including the International Financial Law Review 1000 (ILFR1000), the Legal 500, Chambers and Partners and Asialaw Profiles, and for which our lawyers have been consistently recognized as “leading”, “highly regarded”, “well regarded” and “market-leading” lawyers.

We have extensive experience acting for platform operators in the offering and operation of electronic facilities in Hong Kong to directly match and route orders and provide clearing and settlement services for trades, including in respect of stock trading, the trading of futures and other derivatives, currency and forex trading and commodity trading. We represent operators in their dealings with the Securities and Futures Commission (“SFC”) and advise on how to comply with applicable Hong Kong laws and regulations.

Our work includes advising on the following:

• advising on Hong Kong regulatory issues, including in respect of SFC authorization, licensing or registration as a provider of automated trading services (“ATS”) and applicable exemptions, as well as in respect of the stock market monopoly given to the Stock Exchange of Hong Kong (“SEHK”) and the gold and silver market monopoly given to the Chinese Gold and Silver Exchange Society (“CGSE”)

• advising extensively on insolvency law issues applicable to clearing systems in Hong Kong, including in respect of the default of clearing members and a default of the clearing system itself as part of the financial market infrastructure (“FMI”), and advising on the application of the Companies (Winding-up and Miscellaneous Provisions) Ordinance (“CWUMPO”) and the Financial Institutions (Resolution) Ordinance (“FIRO”) in the context of the insolvency of a clearing system

• advising on mandatory trade reporting and trade clearing obligations under the Securities and Futures (OTC Derivative Transactions - Reporting and Record Keeping Obligations) Rules and the Securities and Futures (OTC Derivative Transactions – Clearing and Record Keeping Obligations and Designation of Central Counterparties) Rules and preparing applications to the SFC for designation as a central counterparty (“CCP”)