Operational Trading Procedures for Options Trading Exchange Participants of the Stock Exchange 
17/07/2017 
 

Operational Trading Procedures for Options Trading Exchange Participants of the Stock Exchange

TABLE OF CONTENTS

PREFACE

CHAPTER 1

THE OPTIONS SYSTEM: OPERATIONAL AND SERVICE SCHEDULE
1.1
1.2
1.3
1.4
1.4A
1.5
1.6
1.7
1.8
1.9
1.10
1.11
1.12
The Options System
Stock Options Trading
Stock Options Clearing
Periods for Trading on HKATS
Periods for Clearing in DCASS
Normal Trading Day
Half-Day Trading
Control of Trading Periods
Approach and Retreat of Typhoon
Issuance and Cancellation of Black Rainstorm Warning
[Repealed]
[Repealed]
Special Events

CHAPTER 2

ACCESS TO HKATS
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
Means of Access
Notification of Change of Address or Means of Access 
[Repealed] 
Passwords
Application for HKATS Username
[Repealed]
Outside Services
[Repealed]

CHAPTER 3

TRADING FUNCTIONALITIES
3.0
3.1
3.1A
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
3.9A
3.10
3.10A
3.11
3.12
3.13
3.13A
3.14
3.15
HKATS Risk Controls and Functions
Central Orderbook
Trade Record
[Repealed]
Class Codes
Notation of Contract Specifications
Error Trades
Order Types
Limit Orders
[Repealed] 
Execution of Standard Combinations
Creation, Execution, Deletion of Tailor-Made Combinations
Order Allocation
Order Amendment and Cancellation
Trade and the Integrated Clearing Process
Message Broadcast
[Repealed]
Market Messages Window of HKATS
[Repealed]
Block Trades

CHAPTER 4

MARKET MAKING
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.11A
4.12
4.13
Market Maker Permit
Application Procedures for Market Maker Permit
Renewal of Regular Market Maker Permit
Surrender of Market Maker Permit
Revocation of Market Maker Permit
Market Makers' Quotes
Quote Requests
[Repealed]
[Repealed]
Surveillance of Market Makers
Market Maker Accounts
Separate Accounts for Designated Traders
Obligations of a Market Maker
Obligations During "Unusual Market Conditions"

CHAPTER 5

CLIENT SERVICES SUPPORT
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
5.10
5.11
5.12
House Accounts
Client Account
Give-Up and Take-Up
Margining
Notification of Client Margin
Collection of Client Margin
Entry and Adjustment of Exercise Requests
Settlement of Client Premium
Position Limit and Reporting Level
Responsibility of Reporting Excess in Reporting Level
Reporting Excess in Reporting Level
Increasing a Position Limit

CHAPTER 6

[Repealed]

CHAPTER 7

CONTINGENCY PROCEDURES
7.1
7.1A
7.1B
7.1C
7.2
7.3
7.4
7.5
7.5A
7.6
[Repealed]
[Repealed] 
System Failure
Equipment Failure
[Repealed]
[Repealed]
[Repealed]
[Repealed]
[Repealed]
 [Repealed]

CHAPTER 8

SPECIAL EVENTS

8.1
8.2
8.3
8.4
8.5
8.6

Capital Adjustments
Circumstances Which May Give Rise to Capital Adjustment
Standard Adjustment Methodology
Capital Adjustment Announcement
Effective Day of Capital Adjustment
Changes to Capital Adjustment Announcement by Company

APPENDICES

A
B
C
D
E
F
G
H
I
J
K
L
M
FEES & COSTS PAYABLE TO THE EXCHANGE
OPTIONS CONTRACT SPECIFICATIONS
[Repealed]
STANDARD FORMS
[Repealed]
FACSIMILE INDEMNITY
[Repealed]
CLIENT MARGINING USING THE PRiME CALCULATION ALGORITHM
STANDARD BROADCAST MESSAGES
POSITION LIMIT REPORTING FORM
[Repealed] 
[Repealed] 
[Repealed] 
[Repealed]
(Updated to include all amendments effected on or before 3 April 2017)