Overview

Exchange Participants (EP) of SEHK that demonstrate that it is suitably qualified in terms of financial standing, risk management, trading record, computer equipment and internal security procedures as stipulated in Explanatory Note EN10*

If SMM holds market making positions in accounts of an affiliate, the affiliate has to fulfil one of the below criteria:            

• A regulated entity is one regulated by an exchange, clearing house, independent authority or commission which is acceptable to HKEX;
• The affiliate must have and must maintain a current credit rating of A- or above (Standard & Poor’s) or A3 or above (Moody's);           
• The paid-up capital of the entity must be at least equal to the equivalent of HK$50,000,000 and its shareholders' funds must be at least the equivalent of HK$100,000,000 at all times.         
  
  

Clients of EPs that satisfy one of the below criteria:

1. licensed by or registered with the SFC for Type 1 or Type 2 regulated activities under the Securities and Futures Ordinance, or licensed, registered for similar activity by an overseas authority having a memorandum of understanding with the SFC for the sharing of market surveillance information
2. licensed bank regulated by an authority acceptable to SEHK
3. maintained a current long-term credit rating of A- or above (Standard & Poor’s) or A3 or above (Moody's)
4. maintained a paid-up capital of at least HK$50,000,000 and shareholders' funds of at least HK$100,000,000

Point to note:

• An EP can register one or more DS for an ETP counter
• A DS can be registered by more than one EP only for different ETP counters
• An EP may apply to make market on the same ETP counter as its registered DS

EP should submit application form (Form 10), internal report and documentary evidence showing its affiliate satisfying relevant requirements (if applicable)

Download Application Form 10

Download Explanatory Note 10

EP should submit application form (Form 10A) and internal report as stipulated in Explanatory Note EN10A to register for its DS

Download Application Form 10A

Download Explanatory Note 10A

EP can apply for a Market Making Orion Central Gateway (MMOCG) session at a discounted rate for market making of ETPs for itself and for each of its DS.

Download Application Form

Download Explanatory Note

Market makers receive incentives and are subject to market making obligations.

Download Market Making Arrangement 
Please note obligations of DS are monitored based on unique broker number.

Market making obligations are determined based on the ETPs grouping