Hong Kong Exchanges and Clearing Limited (HKEx) was informed that the Securities and Futures Commission issued a restriction notice on Man Lung Hong Securities Ltd (broker numbers: 3490 and 3499) today (Friday) under sections 204 and 205 of the Securities and Futures Ordinance. 

As a consequence, The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of HKEx, has suspended the Exchange Participant's right to access AMS/3, the Third Generation Automatic Order Matching and Execution System, until further notice under Rule 704 of the Exchange. Hong Kong Securities Clearing Company (HKSCC), also a wholly-owned subsidiary of HKEx, declared Man Lung Hong Securities Ltd a defaulter under Rule 3702 of the General Rules of CCASS, the Central Clearing and Settlement System.

Pursuant to its default procedures, HKSCC will effect closing-out of the unsettled stock positions of Man Lung Hong Securities Ltd by entering opposite transactions to offset the unsettled stock positions. The effect of this action is to arrive at a net sum payable by or to the defaulting CCASS Broker Participant.