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Guide to Becoming an Exchange Participant

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

HKEX Participantship Structure_EN

HKEX Participantship Structure

Types of Exchange Participantship

  • Stock Exchange Participants are entitled to deal in securities products such as equity securities, equity warrants, Exchange Traded Products, derivative warrants and Callable Bull/Bear Contracts, etc.
  • Futures Exchange Participants may deal in all futures and options, with the exception of stock options.
  • Brokers that intend to offer stock options brokerage services have to apply to the Stock Exchange to become Stock Options Exchange Participants.  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, while OBEP can only trade stock options through an OTEP.

Trading Rights

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. 

Further information on becoming an Exchange Participant and relevant application forms are available in the following sections.  The completed application forms should be returned to HKEX Participant Services.  For enquiries, please contact us by:

Address   : Participant Services, Cash Trading Department
                     
Hong Kong Exchanges and Clearing Limited
                     6/F, Two Exchange Square
                     8 Connaught Place, Central
                     Hong Kong

Email         : trd@hkex.com.hk

Phone        : +852 2840-3626


Updated 09 Mar 2018

Application Process

 

Stock Exchange Participantship

(SEHK)

Stock Options Exchange Participantship

(SEHK)

Futures Exchange Participantship

(HKFE)

Step 0. Prerequisite/ Admission Criteria for Participantship

Refer to admission criteria of respective participantship:

Trading

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Clearing

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Trading

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Clearing

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Trading

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Clearing

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Step 1. Apply to HKEX

Submit completed application forms to HKEX, together with supporting documents, applicable deposits and payment for Trading Right.

 

Refer to relevant forms and explanatory notes:

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Step 2a. Trading Infrastructure Setup

i. Consider the type of market access;

ii. Order hardware, set up connections and run system tests for the setup of trading front-ends.

 

Refer to overview of infrastructure and access methods:

Overview

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Testing Services for Broker Supplied System

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Overview

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Forms

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Step 2b. Clearing Arrangement

Obtain clearing facilities by either:

 

i. Becoming a Clearing Participant of the respective clearing house

  • Submit application documents for Clearing Participantship
  • Setup clearing system:
    • Open designated bank accounts
    • Install relevant clearing system terminals
    • Set up delegated user accounts for system access
  • Provide Operations and Risk Control Plan for review

 

Refer to further details of becoming a Clearing Participant of the respective clearing house:

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Operational Setup

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Operational Setup

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Operational Setup

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OR

ii. Maintaining an approved clearing arrangement with a General Clearing Participant

 

Refer to further details of third party clearing by General Clearing Participants:

Third Party Clearing by HKSCC General Clearing Participants

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Third Party Clearing by HKCC/ SEOCH General Clearing Participants

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List of HKSCC General Clearing Participants

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List of SEOCH General Clearing Participants

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List of HKCC General Clearing Participants

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Updated 09 Mar 2018

Costs Involved

In addition to basic business costs, an Exchange Participant will incur one-time setup costs, deposits, as well as periodic and/ or variable charges.  The costs specified herein cover only the major items and are not meant to be exhaustive.

 

 
  Stock Exchange Participantship (SEHK) Stock Options Exchange Participantship (SEHK) Futures Exchange Participantship (HKFE)
Exchange Costs/ Deposits

One-time:

  • Stock Exchange Trading Right Application Fee
N/A

One-time:

  • Futures Exchange Trading Right Application Fee
 

 Periodic/ Variable:

  • Stock Exchange Trading Right Monthly Subscription Fee (in respect of each Stock Exchange Trading Right held)
 Periodic/ Variable:
  • Futures Exchange Participant Annual Subscription Fee
 

Deposits:

  • Stamp Duty Deposit*
  • Fidelity Fund Deposit (in respect of each Stock Exchange Trading Right held)*
  • Compensation Fund Deposit (in respect of each Stock Exchange Trading Right held)*
 N/A
 Details: hyperlink icon_r Details: hyperlink icon_r 
System Access Costs

One-time:

  • Orion Central Gateway (OCG) Session Administration Fee
  • Circuit Installation Charge - EP pays the circuit installation charge directly to Accredited Vendors
  • Additional Throttle(s) for OCG (for business expansion)

One-time:

  • Hardware             
    • HKATS Online Workstation
    • Switch and cable
  • Software Cost
  • Installation Charges
 
 

Periodic/ Variable:

  • Monthly Session Fee for OCG
  • Monthly charge for circuit rental - EP pays the circuit rental directly to Accredited Vendors
  • Monthly Fee for Stock Exchange Trading Right assigned to an OCG session
  • Monthly Fee for Standard Throttle Rate arising from trading right entitlement assigned to an OCG session
  • Monthly Fee for Additional Throttle

Periodic/ Variable:

Monthly

  • Monthly Data Line Charges (including routers)
  • Monthly HKATS Online or OAPI Sub-license Fee

Annually

  • Annual Maintenance Fee
  Details: hyperlink icon_r  Details: hyperlink icon_r
Clearing/ Settlement Costs/ Deposits

One-time:

  • HKSCC Admission Fee (in respect of each Stock Exchange Trading Right held)*
  • Circuit Installation Charge - CP pays directly to Accredited Vendors 

One-time:

  • DCASS Connectivity Test
  • Circuit Installation Charge (if applicable) - CP pays directly to Accredited Vendors
 
 

Periodic/ Variable:

Periodic/ Variable:

  • Monthly Sub-license fee for (i) DCASS workstation applications software or (ii) OAPI via the Participant’s remote network gateway
  • Monthly Sub-license fee for (i) DCASS workstation applications software or (ii) OAPI via the central gateway
  • Monthly charge for circuit rental (if applicable) - CP pays directly to Accredited Vendors 
 

Deposits:

  • HKSCC Basic Guarantee Fund Contribution (Cash)*

Deposits:

  • HKCC Participant Deposit/ SEOCH Initial Reserve Fund Contribution*
Details: hyperlink icon_r  Details: hyperlink icon_r  Details: hyperlink icon_r 

*HKEX may refund the deposit/fee according to respective rules and provisions upon resignation/termination of Participantship and/or relinquishment of Trading Right(s), where applicable.

Updated 07 May 2019

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