TABLE OF CONTENTS
3 Opening a Bank of China (UK) Limited HKSE Account
4 Moving money into your Bank of China (UK) Limited HKSE Account
5 Moving money out of your Bank of China (UK) Limited HKSE Account
7 Cancellation, closure and suspension of accounts
9 Investment dealing service
10 Best execution
11 Terms of dealing
12 Custody and settlement
13 Your classification
15 Market data providers
16 Default and lien
17 Rights of set-off
18 Information and communication
19 Data protection
20 Security procedures
22 Your obligations
23 Fees and taxes
24 Liability and indemnity
25 Financial Services Compensation Scheme
26 Additional terms and conditions
27 Changes to terms and conditions
28 Governing law and jurisdiction
Annex 1 Important information, Our website, Disclaimer of warranty and limitations of liability, Reservation of rights, Use of links, Cookies, Telephone recording
Annex 2 Security information
Annex 3 Best execution disclosure statement
Annex 4 Trading sessions for the Hong Kong Stock Exchange
Annex 5 Order Types
Bank of China (UK) Limited Hong Kong Stocks Express Service (BOC (UK) HKSE) is an investment dealing service provided by Bank of China (UK) Limited. The use of "we", "us" and "our" in these terms and conditions and on our website means Bank of China (UK) Limited and should be construed accordingly.Other expressions used in these terms and conditions and in the Annexes are defined in the Interpretation sectionof these terms and conditions.
These terms and conditions are legally binding between you and us and your use of BOC (UK) HKSE is subject to you complying with these terms and conditions.
After completing the application process, the BOC (UK) HKSE enables you to open a Bank of China (UK) Limited HKSE Account (HKSE A/C). The HKSE A/C gives you the ability to trade in investments and comprises a Share Current Account and a Share Investment Account, which we will open for you when your application has been accepted and all our account opening formalities have been completed.
The following words used in these terms and conditions and the Annexes have the meanings specified below:
agreement means these terms and conditions, any supplemental terms and conditions which we will communicate to you before we provide a product or service to you, the application form signed by you and details of notice periods and fees contained in separate leaflets or on our rates and fees page;
application means the document and / or any other electronic registration process that we may require you to complete to open a HKSE A/C with us;
associates mean any company that is an associate of Bank of China (UK) Limited;
best execution disclosure statement refers to the disclosure statement in Annex 3 which sets out how we will deliver the best possible result when executing client orders;
best possible result refers to the best possible result for an executed client order in terms of total consideration, representing the price of the financial instrument and the related execution costs;
BOC Group means Bank of China Limited, its subsidiaries, affiliates and associates from time to time;
BOC (UK) HKSE means the Hong Kong Stocks Express Service offered by Bank of China (UK) Limited to you in accordance with the agreement;
bonds are a type of investment where the investor purchases short or long term debt issued by governments (government bonds) or companies (corporate bonds). In return for ownership of bonds the investor receives a quoted interest payment (coupon rate) and redemption of the face value of the bond on a date set in the future known as the maturity date;
cleared funds mean the amount of funds standing to the credit of your account in connection with a trade in investments which we have executed and the payments have been settled;
clearing system means CREST or any other market clearance facility, settlement system, centralised securities depository or similar facility, system or depository;
client order refers to an instruction received and accepted by us to buy or sell a financial instrument; customers may only place a limit order for Hong Kong stocks;
communications means all communications between us and you by post or secure e-message including the sending of contract notes;
complex products means products defined as being subject to appropriateness requirements in the FCA Handbook reference, COBS 10;
custodian means any arrangement where a firm safeguards client assets on behalf of a client;
customer service centre means our service centre which handles all telephone calls and email enquiries for services and products offered under the agreement;
email means an email that is not sent or received or accessed from within our website;
e-message means secure communications that are sent or received or accessed from within our website;
exchange traded funds (ETFs) are a pooled investment containing a variety of securities which are traded via an exchange. ETFs are often designed to track the movement of an index or sector. ETFs provide the benefit of diversification through a single instrument;
execution-only means that in terms of client orders, Bank of China (UK) Limited or its associate will perform the execution-only of client orders with respect to the BOC (UK) HKSE;
execution policy refers to our internal policy setting out how we will deliver the best possible result when executing client orders;
execution venue refers to a trading venue that we or our associate believe offers the best prospects for us to obtain the best possible result on a consistent basis;
fee schedule means a specific page on our website or in paper format as amended and notified to you from time to time. The fee schedule contains a full list of possible costs incurred by customers of the BOC (UK) HKSE;
Financial Conduct Authority (FCA) is the independent body that regulates the financial services industry in the United Kingdom, or any successor regulatory body;
Financial Conduct Authority (FCA) Rules refer to the Handbook published by the FCA (or such other replacement rules as may be published from time to time by the FCA);
HKSE A/C means the Bank of China (UK) Limited Hong Kong Stocks Express Account offered by us, which comprises a Share Current Account and a Share Investment Account and may also include such other accounts and/or products as we may offer you from time to time;
indicative equilibrium price (IEP) is the price for maximizing the aggregate size of orders that may be executed based on the methodology specified in the rules of an exchange;
instruction is any request or instruction given to us given via our website, telephone, or in writing including instructions to effect value transactions which are conducted through BOC (UK) HKSE by use of your security details;
investments means all securities listed on the Hong Kong Stock Exchange which are available through the BOC (UK) HKSE; the securities which are available at any time are listed in the "Eligible Stocks List" on our website and may, from time to time, include shares, warrants, bonds and exchange traded funds. We may also make Initial Public Offerings (IPOs) available for cash subscription;
limit order refers to all four limit order types that are effective during market trading hours but can be placed outside of market trading hours except during certain periods set out in these terms and conditions. The four types of limit order are: enhanced limit order, special limit order, standard limit order and auction limit order;
market data means all securities prices, quotations, news (both financial and non-financial), company information and other information and facilities provided via our website or customer service centre by market data providers;
market data providers means various third party sources, which provide market data via our website;
multilateral trading facility refers to a computer system through which multiple parties can buy and sell certain types of financial instruments;
nominee name is a registered name that client assets are safeguarded under for ease of administration by a firm;
normal market hours mean, in respect of an exchange and a day on which it is open for trading, the hours between which it is open for trading. Normal working hours on the Hong Kong Stock Exchange are 10am to 4pm (Hong Kong Time) from Monday to Friday;
password means the number adopted by you in connection with the use of the BOC (UK) HKSE service;
personal information means all the information you give to us, our group companies or any other of our associates and to linked suppliers or which we obtain about you personally in connection with the agreement;
regulated market refers to the computer systems of an authorised market through which multiple parties can buy and sell the types of financial instrument which are admitted to trading under the rules of the market; for example, The Stock Exchange of Hong Kong Limited;
retail clients are all customers of the BOC (UK) HKSE under FCA rules. Retail clients receive the greatest degree of protection under the present regulatory system in the UK;
security details means the information which enables us to authenticate your identity including your account number, website login ID and password;
settlement date means in relation to a sale transaction, the date the proceeds of sale are credited to your Share Investment Account and in relation to a purchase transaction, the date the purchase monies are debited to your Share Investment Account;
Share Current Account means your Bank of China (UK) Limited personal current account nominated by you, which is opened in Hong Kong Dollars and from which you can transfer money to and from your Share Investment Account;
Share Investment Account means a deposit account opened in Hong Kong Dollars in your name with Bank of China (UK) Limited from which we will debit monies required to fund the acquisition of your investments and any calls in respect of monies unpaid on your investments and to which dividends and other monies received in respect of your investments (including any sale or redemption proceeds) will be credited;
Share Investment Account Number means the 11 digit unique number given to your Share Investment Account;
shares are a type of investment that represents ownership in a company. When you buy shares you become an owner of a proportion of a company;
statements mean the pages on our website and any communications sent by post listing the cash and investments in your HKSE A/C and relevant transactions;
sub-custodian means an arrangement where client assets are held by a third party outside of a firm and client for safeguarding on behalf of a client;
third parties mean all agents, associates, nominees, dealers, brokers, counterparties, contractors, custodians, information service providers, providers of execution facilities and providers of other financial products (including their respective delegates) as may from time to time be engaged by us in providing the Services;
trades mean the purchase or sale by you of an investment;
warrants are securities that provide the holder with a time limited right to subscribe for shares, debentures, loan stock or government securities and are exercisable against the original issuer of the underlying securities;
we, us, and our mean Bank of China (UK) Limited;
website means www.bankofchina.com/uk
Website Login ID means the identification number you will be given to access our BOC (UK) HKSE service;
you and your mean the person who signed the application for the BOC (UK) HKSE.
3. Opening a Bank of China (UK) Limited HKSE Account
3.1 You must be at least 18 years of age.
3.2 You may apply to open a HKSE A/C by completing an application in any one of our branches or via post. We reserve the right to decline to open an HKSE A/C.
3.3 We will open a Share Current Account and a Share Investment Account, which are all in Hong Kong Dollars (HKD), for you when your application has been approved and our account opening formalities have been completed.
3.4 The HKSE A/C is not available to US tax payers.
3.5 None of the services or investments referred to in these terms and conditions or on our website is available to persons resident in any country where the provision of such services or investments would be contrary to local law or regulation.
3.6 We cannot give you any investment, taxation or other advice in connection with your account. If you need advice, we recommend you consult a professional financial adviser.
4. Moving money into your Bank of China (UK) Limited HKSE Account
4.1 You must deposit or transfer money into your Share Current Account by the methods notified to you on our website or the Hong Kong Stocks Express Service "How to get started" booklet, or as otherwise notified to you from time to time.
4.2 In order to use the HKSE A/C you must transfer sufficient money into your Share Current Account. We will credit your "fund available to hold" balance in real time, unless during a system maintenance period.
5. Moving money out of your Bank of China (UK) Limited HKSE Account
5.1 We will transfer money out of your Share Current Account on instructions given to us by the methods notified to you on our website or the Hong Kong Stocks Express Service "How to get started" booklet, or as otherwise notified to you from time to time. We may use your security details to authenticate your instructions.
5.2 If you wish to transfer any money out of your Share Investment Account, you should transfer it first to your Share Current Account, we will normally debit your "fund available to release" balance in real time, unless during a system maintenance period.
6.1 No interest will be payable on credit balances in your HKSE A/C.
6.2 We will notify you by post, statement message, or email of all changes to interest rates applicable to your HKSE A/C within 30 days of the change. We will also update our website. Information about our current rates is available by telephoning us and speaking to a customer service representative or visiting one of our branches.
7. Cancellation, closure and suspension of accounts
7.1 You can close your HKSE A/C at any time. Before you do so you must give us a minimum of 30 days notice. Also you must sell or transfer all your investments held through BOC (UK) HKSE and move all of your money out of the HKSE A/C before we are able to close your HKSE A/C. However, please note you will not be able to cancel any transactions undertaken via BOC (UK) HKSE where the price depends on fluctuations in the financial market place. You will also have to pay any money due to us at the time you cancel the agreement or close your HKSE A/C.
7.2 If you wish to cancel this agreement or close your HKSE A/C you must tell us in writing. You will not be charged for cancelling this agreement or closing your HKSE A/C.
7.3 If we wish to close your HKSE A/C we will give you at least 30 days notice in writing unless there are circumstances which justify us closing the account on earlier notice.
7.4 We may close any of your accounts or your entire HKSE A/C immediately without notice if:
7.4.1 at any time we reasonably believe that:
- there is a change in law or regulation that requires us to do so;
- you are not eligible for the account(s) in question;
- you have given us false information at any time;
- we suspect your account(s) are being or have been used illegally or for a purpose that we reasonably consider inappropriate, given relevant market practices (by you or by someone else);
- you have been asked to repay money you owe us and have not done so;
- your behaviour is such that we do not wish to deal with you;
- your account has become overdrawn without authorisation;
7.4.2 you have been in serious or persistent breach of these terms and conditions.
7.5 If you cancel this agreement or your HKSE A/C is closed by you or us for any reason:
7.5.1 any benefit or services provided to you by us will end immediately unless the terms and conditions relating to the particular benefit or service state otherwise;
7.5.2 you must repay or pay any money you owe us, including any charges to us in connection with the closure of any of your accounts;
7.5.3 you must give us an instruction to sell or transfer all your investments held through BOC (UK) HKSE not later than 30 days after notice in relation to the closure of your HKSE A/C or the cancellation of this agreement has been given by you or us (as the case may be).If you do not do so, we shall have the right, at our sole discretion, to sell all of your investments held through BOC (UK) HKSE (in which case we will account to you for the proceeds after deducting any costs incurred by us or any of our associates in relation to the sale).
7.6 Cancellation or closure will not affect any outstanding transactions or any rights or obligations, which may already have arisen between us. Transactions in progress at the date of cancellation or closure will be completed by us as soon as is practicable, subject to these terms and conditions, before the HKSE A/C can be closed.
7.7 If you do not hold any investments, and there has been no activity on your HKSE A/C for 12 months, or if we become aware that the contact information we hold is incorrect and we are unable to trace you, we may add a marker to your HKSE A/C which could mean you are unable to access your HKSE A/C online. We will be happy to undertake trades on your behalf, or release any funds which may be in your HKSE A/C, if you telephone our customer services centre. Any funds which remain in your HKSE A/C and any investments which are held for you through BOC (UK) HKSE will continue to be your property.
8.1 We will provide you with a statement every month by post or email, unless there have been no transactions on the account since the last regular statement. You may request a statement at any time, which again will be provided via the post or email. We may levy a charge for sending statements requested in addition to your regular statements. Please see the "fee schedule" for further details.
8.2 Statements will show details of the transactions that have passed through your Share Current Account and your Share Investment Account and the investments which are held for you through BOC (UK) HKSE. The basis on which investments shown on statements are valued by us will be their estimated value on the date shown on the statement based on information we receive from reputable published sources and/or our reasonable judgement.
8.3 We may attach messages or other communications to your statements to tell you about changes to these terms and conditions.
8.4We recommend that you check your statementsupon receipt. If there is an entry which appears to be incorrect, you should contact the customer service centre as soon as possible.All transactions and other information in any statement will be binding on you unless we receive notice of objection in writing or via electronic mail within 48 hours after you receive or are deemed to have received the same.
9. Investment dealing service
9.1 You may only trade in investments as defined in the Interpretation section in these terms and conditions. We do not provide any investment advice or personal recommendations. In giving orders to us to deal in investments, you do so in reliance on your own judgement. Independent advice should be sought if required.
9.2 You may submit your instructions via our website or the customer service centre. At times where systems are down, you may give instructions face-to-face in the branch. If you submit your orders via the customer service centre, we may charge you a higher fee as stated in the "fee schedule". We will not accept instructions given by fax or email to buy or sell investments. When you place an order, we may, in our absolute discretion, decline to accept it.
9.3 When we accept an order, we will use reasonable endeavours to carry it out on the best terms, but we will not be liable for any loss or expense you incur if we are reasonably unable to do so for whatever reason (including systems failures) or if there is a delay or change in market conditions before the transaction is effected. If you place an order to buy or sell investments and the order cannot be executed in its totality, if the order can be partially executed, it will be executed to the extent possible and the balance will be cancelled at market close. We will not be liable for any loss suffered by you arising from partially executed or cancelled orders.
9.4 We provide real time or 15 minute delayed price quotes as part of the BOC (UK) HKSE. You are provided with 150 real time prices quotes per calendar month plus 100 further real time price quotes for each and every trade performed by you during any calendar month. Unused free quotes during any month will not roll over to the next month. You can also request unlimited 15 minute delayed free price quotes. All prices provided by us are indicative only as the market price may move, either in your favour or against you, during the time between the display of the price to you and the execution of your order. An order from you will be carried out as soon as is reasonably possible.
9.5 We will accept orders given outside normal market hours. Orders accepted when a market is closed will be placed as soon as reasonably practicable after the market opens.
9.6 You may place orders during normal market hours or outside normal market hours, but not during 4:10pm to 6:00pm (Hong Kong time). You will be able to cancel or amend a limit order after it is successfully placed into the system and limit price has not been met. You must fully understand all the different order types and their functions before you decide to trade in the market. You should understand the risks associated with orders being rejected (including modification orders). In the case of rejected orders, we will not be liable for any loss incurred.
9.7 If you place an order near to the market's closing, whilst we will take all reasonable steps to arrange for your order to be executed before the market's close, your order may not be executed. In this case the order will be cancelled.
9.8 We may at any time, at our discretion and without prior notice to you, suspend, prohibit or restrict your ability to give instructions.
9.9 You confer on us all powers, authorities and discretions on your behalf which are necessary for, incidental to, or customary in the provision of, the services to be provided under this agreement (whether as your agent or otherwise) including the power to appoint sub-agents, and you hereby agree to ratify and confirm everything which we shall lawfully do in the exercise of such powers, authorities or discretions.
9.10 We shall be entitled to instruct any brokers and other agents (who may be our associates) on your behalf as we may decide and confer on them all such authorities conferred on us hereunder (including the authority to appoint other brokers and agents likewise). In particular, wewill use BOCI Securities Limited, a member of the BOC Group, or another associate to execute orders placed by you which are accepted by us and we will act as your agent in carrying out such orders with authority on your behalf to enter into and/or commit you to all such agreements and other arrangements as we consider to be necessary or desirable to carry out and/or effect such orders.
9.11 Orders may be executed directly through any exchange where our associate is authorised to transact business and our associate may, at its discretion, deal through any exchange indirectly through any third party.
9.12 When executing orders our associate may have an interest, relationship or arrangement that is material in relation to the transaction or the securities concerned. In particular, our associate or a third party may:
9.12.1 effect transactions with you as principal for their own account;
9.12.2 effect transactions in securities where they have a position in the relevant securities or are involved with those securities as underwriter, sponsor or otherwise; or
9.12.3 match your orders with those of other customers.
9.13 Your order may, at the discretion of our associate, be consolidated with orders received from other clients. Any such consolidation will not result in the execution of your instructions at a price less favourable than could have been achieved had your instructions been executed individually. If insufficient securities are available to satisfy purchase orders so consolidated, the number of securities actually purchased shall be divided proportionately between the individual instructions which were consolidated.
10. Best execution
10.1 The duties that we owe to you in respect of achieving the best possible result for your client orders are those set out in the FCA rules, and any other duties are expressly excluded.
10.2 Your client orders will be executed in accordance with our best execution disclosure statement set out in Annex 3, as amended and updated from time to time.
10.3 You agree and confirm that each time you give instructions in relation to your client orders; you consent to our best execution disclosure statement.
11. Terms of dealing
11.1 You may not sell investments that are not held for you through BOC (UK) HKSE. If you sell investments, on the date you instruct us to sell, you must have sufficient investments held for you through BOC (UK) HKSE available to sell. However, you may sell investments that have been boughtthrough BOC (UK) HKSE but not yet settled. We will not be liable for any loss you may suffer if you seek to sell any investment that is not held for you through BOC (UK) HKSE or that has been bought but has not been settled at the time of sale.
11.2 If you give an instruction to sell investments that have been bought through BOC (UK) HKSE but have not yet settled,if a failure to make timely delivery on the part of the counterparty from whom the investments have been bought results in the investments which have been sold not being capable of being delivered when due, then, subject to the provision of any applicable laws, rules or regulations, we and our associate through which your orders are executed are authorised by you to borrow, purchase or otherwise acquire securities necessary to complete delivery. You shall be liable and shall indemnify us and/or our associate for any costs, charges, loss, damages or other liability whatsoever which we or it may sustain or incur by reason thereof including any premium, costs or charges incurred by us for arranging any borrowing.
11.3 If youbuy investments, you must have sufficient "buying power" balance in your Share Investment Account.
12. Custody and settlement
12.1 We have arrangements with BOCI Securities Limited under which BOCI Securities Limited will hold and provide safekeeping services in relation to investments which you purchase using BOC (UK) HKSE. BOCI Securities Limited is a member of the BOC Group and is incorporated in Hong Kong and regulated by the Hong Kong Securities and Futures Commission.Your investments will be registered in the name of BOCI Securities Limited or its nominee and held on a segregated basis (that is, segregated from BOCI Securities Limited's own assets).Your ownership of your investments held by BOCI Securities Limited will be identifiable in the books and records of BOCI Securities Limited. We do not accept instructions from our customers to register investments in a name specified by them.
12.2 Your investments may, at the discretion of BOCI Securities Limited, be pooled with other like investments held by BOCI Securities Limited for its customers. In the event of any dividends or other distributions or benefits accruing, or any losses however arising (including losses resulting from a reduction in the number or amount of investments available for delivery) being suffered, in connection with any given investments held, your HKSE A/C shall be credited for payment made to you or, as the case may be, debited with the proportion of such loss equal to the proportion of the total number or amount of relative investments which shall comprise investments forming part of your HKSE A/C.
12.3 Although BOCI Securities Limited has sole responsibility for providing safekeeping services in relation to investments which you purchase using BOC (UK) HKSE, we will indemnify you in relation to any loss you suffer as a result of any willful default, fraud or negligence on the part of BOCI Securities Limited in providing such safekeeping services to the extent that you are unable to recover such loss from BOCI Securities Limited.
12.4 Where we or an associate act for you as your agent, it is the other party to the transaction and not us or our associate who is responsible for settling the trade with you and delivery or payment (as the case may be) will be at your entire risk. Our obligation is only to pass on to you, or to pass on as you direct, or to credit to your account, such deliverable documents or sale proceeds (as the case may be) as we or our associate actually receive.
12.5 We will be responsible for claiming interest, dividends and other distributions in respect of your investments held through BOC (UK) HKSE. All money received by way of such interest, dividends and other distributions will be credited to your Share Investment Account.
12.6 In the absence of contrary instructions, BOCI Securities Limited is authorised at its discretion and at your cost and expense:
12.6.1 to request payment of and receive all interest and other payments or distributions (whether of a capital or income nature) in respect of any of your investments;
12.6.2 to surrender your investments against receipt of the moneys payable at maturity or on redemption of the investments if called prior to maturity;
12.6.3 to exchange any documents relating to any of your investments, where such documents have been issued, in interim or temporary form for definitive form; and
12.6.4 to complete and deliver on your behalf as owner any ownership certificates in connection with your investments which may be required to obtain income from your investments or to facilitate their sale.
12.7 We will use reasonable endeavours to notify you of takeovers or other offers or conversion, subscription or other capital rights attaching to investments held for you through BOC (UK) HKSE. We will not notify you of the dividend payments attaching to your investments, which will be credited to your Share Investment Account.
12.8 If you notify us, within such period as we may specify, that you wish to exercise rights in respect of your investments, we will use reasonable endeavours to give effect to your instructions but only on such terms as we may agree from time to time. Otherwise, we will take no action in relation to the exercise of any rights or offers arising in relation to your investments.
12.9 In relation to any investments held for you through BOC (UK) HKSE which are part paid, we will use reasonable endeavours to notify you as soon as practicable of any calls made or to be made upon those investments in respect of the monies unpaid on them. If you provide us with the relevant funds by credit to your Share Investment Account in sufficient time for us to do so, we will arrange for such calls to be satisfied on your behalf and on such terms as you advise in writing and which are reasonably practicable to us. Otherwise we shall take no action on your behalf and will have no liability whatsoever in respect of the consequences of a failure to satisfy the calls made. However, where we are, or BOCI Securities Limited is, legally liable to meet such calls we or it may do so and you will reimburse the relevant amount forthwith upon demand.
13. Your classification
13.1 BOC (UK) HKSE is provided to you for your personal use only and is not intended to be used for professional purposes. You will be classified as a retail client in relation to your HKSE A/C and your use of BOC (UK) HKSE. This means you receive the greatest degree of protection under the present regulatory system in the UK. You have the right to request a different classification under FCA rules, but this will result in you receiving less regulatory protection.
13.2 Amongst a variety of differences in treatment, retail clients are entitled to receive a greater amount of information from Financial Institutions to enable them to make informed choices. Retail clients are entitled to receive compensation through the Financial Services Compensation Scheme in the event of a Financial Institution going out of business. Also the Bank of China (UK) Limited has a duty towards retail clients to establish whether the Hong Kong Stocks Express Service is appropriate in terms of the retail client's knowledge and experience.
13.3 If you are acting as agent for someone else, we will treat you alone as our customer for the purposes of FCA rules and you will be liable, in addition to that person, in respect of any transactions entered into.
13.4 If you are acting as agent for someone else, (a "Beneficiary"), you agree that, in relation to any transaction where we or our associate executing the transaction has received an enquiry from a Hong Kong Regulator, you shall immediately upon our request (which request shall include the relevant contact details of the Hong Kong Regulator) provide to us such identity details (as may be required by the relevant Hong Kong Regulator) of the Beneficiary for whose account the transaction was effected, of the person with the ultimate beneficial interest in the transaction and/or of the person who originated the transaction.
14.1 The BOC (UK) HKSE is a non advised, execution-only service where retail clients have the opportunity to buy complex products. Complex products available under the BOC (UK) HKSE being warrants. Bank of China (UK) Limited will determine whether all applicants for the BOC (UK) HKSE have the necessary experience and knowledge in order to understand the risks involved in relation to the BOC (UK) HKSE. If Bank of China (UK) Limited finds that the BOC (UK) HKSE is inappropriate in terms of an applicant's knowledge and experience then each applicant will be warned that the BOC (UK) HKSE is not appropriate for them.
15. Market data providers
15.1 Market data is provided for you by various third party sources referred to as market data providers.
15.2 By using the market data, you acknowledge and agree that:
15.2.1 market data is provided solely for your individual use and may not be used in connection with the issuance, trading, marketing or promotion of investment products without a separate written agreement with the market data provider who owns it. You may not copy, distribute or redistribute the market data, including by caching, framing or similar means, or sell, resell, re-transmit or otherwise make the market data available in any manner to any third party. You may not store market data for the purposes of creating a historical database or historical data product;
15.2.2 market data is and will remain the property of the respective market data providers;
15.2.3 at any time, the market data providers may discontinue disseminating any category of market data, may change or eliminate any transmission method and transmission speed and you will not hold the market data providers or us liable for any resulting liability, loss or damage.
15.3 Clause 15 of these terms and conditions is for the express benefit of the market data providers and they may enforce these provisions against you.
15.4 Clause 15 of these terms and conditions will remain in effect for as long as you have the ability to receive market data and will survive termination/cancellation of the agreement.
15.5 The market data is provided "as is" and there may be delays, omissions or inaccuracies in it. We, the market data providers and our and their respective employees, affiliates and agents cannot and do not guarantee the accuracy, completeness, timeliness, merchantability, fitness for a particular purpose, title or non-infringement of the market data and disclaim any such express or implied warranties, to the fullest extent permitted by law.
15.6 Neither we nor the market data providers and our and their respective employees, affiliates and agents will be liable to you for any loss or damage whether or not caused in whole or in part by our or their negligence or omission in procuring, compiling, interpreting, editing, writing, reporting or delivering market data or by any force majeure or any cause beyond our or their reasonable control. In no event will we, the market data providers and our and their respective employees, affiliates and agents be liable to you or anyone else for any decision made or action taken by you in reliance upon market data or for any consequential, indirect, special or similar damages resulting from inconvenience, or loss of use of our website, even if advised of the possibility of such damages.
16. Default and lien
16.1 If you default in paying any amount due and payable to us or any of our associates, including BOCI Securities Limited, you authorise us at our discretion to transfer, sell or apply or initiate or arrange for or permit the transfer, sale or application of any your investments held through BOC (UK) HKSE (including any proceeds of sale) or balance in your HKSE A/C in satisfaction of your obligations, without prior notice to you.
16.2 All of your investments held through BOC (UK) HKSE are subject to lien and held as security for the full discharge and payment of all your indebtedness and obligations to us and our associates, including BOCI Securities Limited, in connection with this agreement. In enforcing the lien, we shall have the right to determine which investments are to be sold and to apply the proceeds of sale, after deduction of expenses, in satisfaction of your obligations.
16.3 Sections 93 (restriction of right of consolidation) and 103 (restriction of right of sale) of the Law of Property Act 1925 will not apply to these terms and conditions.
16.4 Further we are entitled, at any time and without notice to you, to combine or consolidate any credit balances in your HKSE A/C and set off, debit, withhold and/or transfer any sum in or towards satisfaction of your obligations to us or any of our associates, including BOCI Securities Limited.
17. Rights of set-off
17.1 In addition to any other rights, we will have a right to use the proceeds of sale of your investments to set-off your obligations to us.
17.2 At any time that we consider necessary or desirable, we may without notice:
17.2.1 treat any outstanding transaction as having been cancelled and terminated;
17.2.2 arrange the sale of investments to realise funds to cover any outstanding amount;
17.2.3 close out, replace or reverse any transaction or take, or refrain from taking, such other action at such times and in such a manner as we consider necessary or appropriate to cover, reduce or eliminate loss or liability under or in respect of any contract, positions or commitments;
17.2.4 combine, consolidate or merge all or any of your accounts, outstanding balances and other amounts with, or liabilities to, us and may set-off any sum standing to the credit of any such accounts, balances or other amounts in or towards the satisfaction of any of such liabilities. We may effect such transfers between any of your accounts.
18. Information and communication
18.1 You may contact our customer service centre by telephone, e-mail or by post and in any other ways that we may inform you about from time to time or visit our Branches in person. When you contact us by telephone, we will check your identity using your security details. You may contact the Hong Kong Stocks Express Service in the English and Chinese languages. We will communicate to you in the Chinese and English languages.
18.2 We may, in our absolute discretion allow you to contact us by fax. Although we cannot act on faxed instructions to buy, sell or exercise rights in respect of investment. If we allow you to contact us by fax, you do so at your own risk and we will not be held liable for, and you will indemnify us in respect of, the consequences of our acting in good faith in accordance with any instructions contained in any such fax.
18.3 You may contact us by email; however we cannot act on instructions to buy or to sell securities via email. If you do so, you do so at your own risk and we will not be held liable for, and you will indemnify us in respect of the consequences of our acting in good faith in accordance with any instructions contained in any such email.
18.4 You agree that for the purposes of sending you any communications or other documentation relating to your HKSE A/C, such as statements and contract notes in respect of your investments, we may in our absolute discretion send such documentation in electronic form only.
18.5 We will inform you of any changes to our contact details. Please tell us as soon as possible if you change your name, address, telephone, email address (if applicable) or any other details. We will not be liable for communications or statements sent to you using your old details prior to our receipt of your new details in accordance with this term.
18.6 To ensure we carry out your instructions accordingly, to help us continually improve our service and in the interest of security, we may monitor and/or record your telephone calls, e-messages, emails and other internet communications with us.
18.7 Any news, prices, opinions and other information is provided solely to enable you to make your own investment decisions and does not constitute personal investment recommendations or advice.
18.8 We cannot provide taxation advice and will not take account of an individual's tax position when providing an opinion on any security.
18.9 Neither we or any of our associates, agents, or licensors makes any representation as to the completeness, accuracy or timeliness of such information nor do we or they accept any liability for any losses, costs, liabilities or expenses which may arise directly or indirectly from use of, or reliance on, the information. Such information is not an offer or solicitation by us or any of our affiliates to buy, sell or otherwise deal in any particular investment.
18.10 The information is and remains our property, the property of our licensors or the property of market data providers and is protected by copyright and other intellectual property laws.
18.11 All communications will be in English or in Chinese and you will receive all documents and other information from us in English or in Chinese. If there is any conflict of interpretation between the two languages, English prevails.
19. Data protection
19.1 Confidential information we hold about you will not be disclosed to anyone (excluding third parties and members of the BOC Group in connection with the provision of the BOC (UK) HKSE service), other than where:
- we are legally required to disclose; or
- we have a public duty to disclose; or
- the disclosure is made with your consent.
19.2 To prevent crime, to verify your identity and to recover debt, we may exchange your personal data (both within the UK and, where appropriate, overseas or Hong Kong) with other members of the BOC Group and where appropriate, with fraud prevention and credit reference agencies.
19.3 If you give us false or inaccurate information and fraud is identified, details will be passed to fraud prevention agencies to prevent fraud and money laundering.
19.4 We may use other BOC Group companies and/or third parties to process information and provide services to you on our behalf. Whether it is processed in the UK or overseas, your information will be protected in accordance with data protection legislation.
19.5 We may exchange, analyse and use relevant information about you and your relationships to give you information (including promotions) about products and services, which may interest you by telephone, post, email, and other means. If you do not want us to contact you about such products and services, please let us know.
19.6 Under data protection legislation, you can make a written request for a copy of certain personal records we hold about you. We may charge you for this service.
19.7 To ensure that we carry out your instructions accurately, to help us to continually improve our service and in the interests of security, we may monitor and/or record your telephone calls, e-messages, emails and other internet communications with us. Any recordings remain our sole property.
19.8 We may use any contact details you have provided to us, including your postal address, telephone number(s) (including your mobile telephone number) and email address to contact you for service related reasons. As such you must ensure that the contact details you provide are accurate and that you notify us promptly of any changes. Remember, communications may contain confidential information and if anyone else has access to them, for example to your email or mobile telephone, they may be able to view this.
19.9 Bank of China (UK) Limited is committed to protecting your personal data. Therefore we will only use your personal information as set out in these terms and conditions. If you do not agree to us doing so, unfortunately we will not be able to provide you with our services.
20. Security procedures
20.1 On opening your HKSE A/C, you will be issued with a Share Investment Account Number, a Website Login ID and password. Your password, Share Investment Account Number and Website Login ID will be sent to you in separate communications.
20.2 If you telephone us, we will ask you a number of questions based on information known to us about you and the transactions on your account. We may not be able to assist you if we decide that we are unable to identify you as our customer using our security procedures.
20.3 When we call you, we will never ask for details of your password. We will ask you questions based on information known to us about you and the transactions on your account.
20.4 You must take all reasonable precautions to prevent fraudulent use of your Share Investment Account Number, Website Login ID or password. These include but are not limited to:
20.4.1 destroying the customer password advice immediately after receipt;
20.4.2 never writing down your Website Login ID or password in a way that can be understood by someone else;
20.4.3 never disclosing your Share Investment Account Number, Website Login ID or password to anybody else;
20.4.4 telling us immediately if you have grounds to suspect that someone else knows your security details;
20.4.5 never saving your security details on your browser so that they do not need to be re-entered each time you access your HKSE A/C;
20.4.6 not using a workstation where the security of your security details could be compromised, for example, such as accessing any computer connected to a Local Area Network (LAN) or any public internet access device or access point without making sure that no one else will be able to observe or copy your access or get access to our services pretending to be you; and
20.4.7 always fully logging off the BOC (UK) HKSE.
20.5 If you change your password, you must take care not to choose numbers that are easy to guess, such as, for example, 123456, 444444, your birthday or your telephone number.
20.6 Please tell us as soon as possible if:
20.6.1 you change your address;
20.6.2 you have forgotten your security details (including your password); or
20.6.3 you think that someone else who has not been authorised is trying to use any of your accounts.
20.7 We can refuse to act on an instruction if for any reason we think:
20.7.1 it was not given by you;
20.7.2 the instruction is not clear or appears inaccurate or incomplete;
20.7.3 it might cause us to breach the law or a contractual duty; or
20.7.4 we think that any of your accounts are being used for a purpose that we reasonably and in accordance with relevant market practices consider inappropriate or for an illegal purpose.
20.8 When you use BOC (UK) HKSE you must ensure that your computer and modem are adequate for internet use. You must also follow any procedures and instructions contained on our website.
20.9 If we give you software to help you to use our investment service you must not change it or allow anyone else to use or copy it. You must carry out your own virus checks.
20.10 You will tell us as soon as possible if you find any fault, failure, delay or error in our investment service, especially in the sending or receiving of instructions. Our records of your instructions will be conclusive unless there is a clear mistake.
20.11 We may ask you to co-operate with us and law enforcement in relation to any investigation into the actual or suspected misuse of your account. You must report any unauthorised transactions to law enforcement agencies within 7 days of our request. We may also disclose information about you or your account if we think it will help prevent or recover losses.
21.1 If we do not deliver the standard of service you expect, or if you think that we have made a mistake, please let us know. We will then investigate the situation and, if necessary, set about putting matters right as quickly as possible. However, if you remain dissatisfied and would like further information about our process for resolving complaints, we will provide the information.
21.2 We hope that we will be able to resolve any concerns you raise, but if you are still dissatisfied, or we haven't sent you a written final response letter within 8 weeks from the date you originally complained you have the right to refer your complaint to the Financial Ombudsman Service.
22. Your obligations
22.1 You agree and confirm to us each time you use our services, that:
22.1.1 you are not in any way legally or otherwise restricted or prohibited from making a transaction or otherwise using our services. It is your responsibility to make yourself aware of and comply with any reporting responsibilities of the relevant exchange should you buy or sell investments in a company involved in a takeover during an offer period;
22.1.2 these terms and conditions and each transaction hereunder are your valid and legally binding obligations (and the obligations of any person(s) on whose behalf you are acting);
22.1.3 your entering into and performance of these terms and conditions and each transaction hereunder does not violate, contravene, conflict with or constitute a default under any law, regulation, rule, judgment, contract or other instrument binding on you or any of your assets (and/or of any person(s) on whose behalf you are acting or the assets of any such person); and
22.1.4 in accepting these terms and conditions, we have not made, and you are not relying upon, any statements, representations, promises or undertakings that are not contained herein.
22.2 You accept full responsibility for monitoring your HKSE A/C. You must telephone us immediately on 0845 602 7083 (if calling from overseas please dial +442079293407) and then send written confirmation as soon as possible if you become aware of:
22.2.1 the failure by you to receive a message from us indicating that an order was received, rejected and/or executed or any such message becoming distorted or wrongly transmitted due to defects in the network where you use our internet service; or
22.2.2 any inaccurate information in your HKSE A/C, balances, records or assets held or transaction history.
22.3 You should not access BOC (UK) HKSE from another country if it is not permissible to do so in that country. You acknowledge that it is your responsibility to check that this is not the case and we will not be liable for your failure to do so.
22.4 You will be solely responsible for making all notifications, filings and disclosures required by any government or regulatory authority in Hong Kong or elsewhere in connection with any purchase or sale by you of investments using the BOC (UK) HKSE service. In particular (but without limitation), if you buy or sell investments during an offer period in either a target or bidder company involved in a takeover, you may be required to report details of your dealings to the Hong Kong Takeover Panel if you own or control 1% or more of the company's securities. It is your responsibility to make any such report
23. Fees and taxes
23.1 The commission and fees payable by you for use of BOC (UK) HKSE are set out in our fee schedule. You must also pay any applicable VAT, stamp duty, other taxes, levies or other transaction costs. Any such amounts due may be deducted from your Share Current Account with us. We may change our fees from time to time. We will always give you at least 30 days notice in advance should there be any adjustment to any fees.
23.2 Certain additional fees may apply as set out in our fee schedule from time to time in the event that you do not comply with your obligations under these terms and conditions.
23.3 We may debit your Share Current Account to meet any fees that are due to us.
23.4 You will at all times be fully responsible for payment of all taxes due and for making all claims in relation thereto by yourself.
24. Liability and indemnity
24.1 Neither we nor any of our associates, agents or their directors, officers or employees will be liable for any losses, costs, liabilities, expenses or damage incurred by you in connection with the agreement or the provision of the BOC (UK) HKSE unless caused directly by our or their negligence, willful default or fraud. To the extent that such liability arises, and save where the law provides otherwise, we will only be liable to the extent that any losses, costs, liabilities, expenses or damage result directly from such negligence, willful default or fraud. We will not be liable for any losses we could not reasonably have expected to occur.
24.2 We will not be liable to you if we do not act on your instructions for any reason set out in the agreement or if we cannot carry out our responsibilities to you because of any cause that we or our agents or sub-contractors cannot reasonably control. This exclusion includes any losses arising from the unavailability of the relevant network to users of our internet services or data entered through or data becoming scrambled, lost or wrongly communicated in transmission due to defects in the network, direct or indirect failure of power supplies, equipment, data processing and communication systems or transmission links and any losses arising because of strikes or other industrial action to the extent that such matters are outside our or their reasonable control.
24.3 You shall indemnify us and our associates on demand against any and all losses, damages, costs, charges and expenses of any nature (including legal costs on a full indemnity basis) incurred by us, or by any of our associates, in connection with:
24.3.1 any failure of or delay by you in performing any of your obligations under this agreement including in connection with the enforcement and preservation of our rights in connection with this agreement; and
24.3.2 our performance of this agreement.
24.4 From time to time we may have to shut down our website to enable us to perform essential work on, or major upgrades to, our service. We will make every effort to keep disruption to a minimum and to notify web users in advance if such shut down becomes necessary.
24.5 If you are late in paying for a trade, any amount due, interest and associated administrative and recovery costs will be payable by you on demand at the rate from time to time published in our fee schedule.
25. Financial Services Compensation Scheme
25.1 We are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. Most depositors – including most individuals and small businesses – are covered by the scheme.
25.2 In respect of deposits, an eligible depositor is entitled to claim up to £85,000. For joint accounts each account holder is treated as having a claim in respect to there share so, for a joint account held by two eligible depositors, the maximum amount that could be claimed is £85,000 each, (making a total £170,000). The £85,000 limit relates to the combined amount in all the eligible depositor's accounts with the bank, including the share of any joint account, and not to each separate account.
25.3 We are covered by the Financial Services Compensation Scheme (FSCS) in relation to the investment services we provide to you through the BOC (UK) HKSE. In respect of investment services, an eligible investor is entitled to claim up to £50,000. You should note that BOCI Securities Limited, which holds investments which you purchase using BOC (UK) HKSE is not covered by the Financial Services Compensation Scheme (FSCS). You will not be entitled to make a claim under the Hong Kong Investor Compensation Fund in relation to any default by BOCI Securities Limited.
25.4 For further information about the scheme (including the amounts covered and eligibility to claim), please ask at your local branch, refer to the FSCS website www.fscs.org.uk or call 0800 678 1100.
26. Additional terms and conditions
26.1 All transactions are subject to the rules and customs of the relevant exchange, market and/or clearing house and to any other applicable rules, regulations and/or laws so that:
26.1.1 if there is any conflict between such rules and these terms and conditions, the former will prevail;
26.1.2 we may take or omit to take any action we think appropriate to ensure compliance with such rules; and
26.1.3 such rules and any such action we take will be binding on you.
26.2 If any provision of these terms and conditions is held to be invalid or ineffective, it will not affect any other provisions.
26.3 Some of our services may be provided using the services of third parties, including other members of the BOC Group, who may act as principal or as agent for us and/or for you.We are authorised to engage the services of and delegate the performance of any part of our services to any third parties on such terms and conditions as we think appropriate. We may do whatever we consider necessary or desirable for or incidental to the provision of our services.
27. Changes to terms and conditions
27.1 We may change, remove, vary or add to any of these terms and conditions or the rates of interest payable on your accounts at any time and we may change, suspend or withdraw any of the services, facilities or benefits made available to you, but we will give you 30 days notice in writing.
28. Governing law and jurisdiction
28.1 These terms and conditions are governed by the law of England and Wales. The English courts will have non-exclusive jurisdiction over all disputes arising in connection with these terms and conditions. Any banking terms and conditions implied by law will also apply to these terms and conditions.
This website is owned, issued and maintained by Bank of China (UK) Limited, and is intended for residents of the UK, Channel Islands and Isle of Man. No persons resident in other countries where the provision of such services or investments would be contrary to local law or regulation may use it.
The BOC (UK) HKSE offers customers the opportunity to trade in the types of securities which are listed from time to time in the "Eligible Stocks List" on our website.These may include the following separate and distinct financial instruments: warrants, shares, bonds and exchange traded funds.
A warrant is a time limited right to subscribe for shares, debentures, loan stock or government securities and is exercisable against the original issuer of the underlying securities. Shares are a type of investment that represents ownership in a company. When you buy shares you become an owner of a proportion of a company. Bonds are a type of investment where the investor purchases short or long term debt issued by Governments (Government Bonds) or companies (Corporate Bonds). Exchange Traded Funds (ETFs) are a pooled investment containing a variety of securities which are traded via an exchange. ETFs are often designed to track the movement of an index or sector.
The market information relating to the past performance of an investment is not necessarily a guide to its performance in the future. The value of investments or income from them is not necessarily a guide to its performance in the future. As stocks and shares are valued from second to second, the price fluctuates continuously. The value of shares can go down as well as up and the income derived from share ownership can go down as well as up. The value of shares can rise or fall due to the volatility of world markets, interest rates, capital values and changes in the rate of exchange in the currency in which the investments are denominated (for example, Hong Kong Dollars). Investing in a single country market could increase your exposure to potential volatility. You may not necessarily get back any of the amount you have invested. All content provided through the Hong Kong Stocks Express Service is only for your personal information and use and is not intended to address your particular requirements or to be relied upon in making (or refraining from making) any specific investment or other decision. Such content shall not constitute any form of advice or recommendation by us. Nothing included in the Hong Kong Stocks Express website constitutes an offer or solicitation to sell investments to anyone in any jurisdiction outside the United Kingdom, in which such an offer or solicitation would actually be unlawful.
Depending on the type of payment (dividend), income received in your HKSE A/C may have tax deducted from it before it is paid to us to hold on your behalf, and/or you may be required to pay some tax on the income received via your own tax return. In addition, any growth in the value of an investment may be subject to capital gains tax if your total capital gains (less allowable losses) from all sources exceed your annual exemption limit. This information is based on our understanding of current law and HM Revenue & Customs practice. Both law and practice may of course change. Your tax liability will depend on your own individual circumstances, including your country of residence for tax purposes. If you are unsure about your own situation, you should seek appropriate professional advice.
The information contained on our website or in other documentation provided to you may not be accurate or up to date, is provided for general informational use only, and should not be relied upon. Our share dealing and investment service is an execution-only service. Nothing on our website or in other documentation provided to you constitutes investment, legal, accounting, or tax advice, nor a representation that any investment or strategy is suitable or appropriate to your individual circumstances. Before entering into a transaction in respect of an investment referred to on our website or otherwise, you should consult your own investment advisors as to its suitability for you.
Our website is intended for use by private customers and not for professional purposes and, by accessing our website, you represent that you are using it for such purposes. We reserve the right to terminate your access if this is not the case. Nothing in our website constitutes a solicitation or recommendation by us, or any other person to buy, sell or hold any security, financial product or financial service or otherwise for the purpose of making a public offer of the same.
Disclaimer of warranty and limitation of liability
The information on our website is provided "As Is". Although the information on our website is obtained or compiled from sources we believe to be reliable, we cannot and do not guarantee or make any representation or warranty, either express or implied, as to the validity, sequence, timeliness, completeness or continued availability of any information or data made available, and expressly disclaim, to the fullest extent permitted by applicable law or regulations, any implied, including warranties of merchantability, fitness for a particular purpose and non-infringement.
The information available on our website is subject to change without notice. We expressly disclaim any obligation to keep the information on our website up to date, free of errors or viruses or to maintain uninterrupted access. We may stop producing or updating any part of our website without notice. Access to and use of our website is at your own risk. We do not warrant that the use of our website or any material downloaded from it will not cause damage to any property, including but not limited to loss of data or computer virus infection.
We bear no responsibility or liability for your use of any third party vendor's software, products, services or equipment in connection with your access and use of our website. In no circumstances will we be liable for any decision made, action or inaction taken by you in reliance on any information or date on our website.
Reservation of rights
All content and information contained within our website or delivered to you in connection with your use of our website is the property of the Bank and other third parties. The trade mark, trade names and logos (the "Trade Marks") used and displayed on our website or otherwise are registered and unregistered Trade Marks of ourselves and other third parties. Nothing on our website or otherwise should be construed as granting any licence or right to use any Trade Mark. We do not waive any of our proprietary rights in our website.
You are entitled to view, copy and print documents from our website solely for your own non-commercial use, provided that you do not remove any copyright or other proprietary notices. You may not sell, publish, reproduce, sub licence, assign, modify or change (by use of an html "frame" or otherwise) any portion of our website or any content and information contained within our website without our prior written consent.
Use of links
Should you leave our website via a link contained in our website and view content that is not provided by us, you will do so at your own risk. We provide links only as a convenience and without liability. The ability to link to another website and the fact that a link exists does not mean that we endorse or guarantee such site, the site sponsor or the site contents. In addition, be aware that when you leave our website you will be subject to the terms and conditions of use and privacy policies of the new website which you are visiting.
We will record your telephone calls to maintain the accuracy and quality of services.
We are committed to the privacy and security of your information.
We keep your information secure by ensuring that:
- The public (pre-login) areas of our website do not contain any of your personal information.
- The secure area of our website supports the use of strong encryption (128 bit SSL). To take advantage of this level of encryption, you will need to use a browser that supports that level of encryption.
- Our web servers are protected behind "firewalls" and our systems are monitored to prevent any unauthorised access. As an extra measure of security your data is stored on separate computers from those used to serve web pages.
Best execution disclosure statement
1. Purpose and scope
This best execution disclosure statement provides a summary of the steps we will take to achieve the best possible result for client orders, taking into account the factors set out below, under our execution policy.
2. Best execution factors
When executing client orders, we will take all reasonable steps to achieve the best possible result on a consistent basis, taking into account a range of factors which include price; cost; speed; likelihood of execution and settlement; size; nature or any other consideration relevant to the execution of client orders.
Price and execution costs will be paramount although other factors such as the type of client order, the type of financial instrument will also be considered where necessary to achieve the best possible result.
3. Execution venue
At present, we will choose the Stock Exchange of Hong Kong Limited as the execution venue for all client orders in relation to financial instruments which may be traded from time to time through BOC (UK) HKSE.
4. Specific instruction warning
We shall, where possible, endeavour to carry out any specific instruction you give us as to how to execute a client order. Please note that by acting on your specific instruction, we may be prevented from executing your client order in accordance with this best execution disclosure statement. In respect of those aspects of execution which are not covered by the specific instruction, we will process the client order in accordance with our execution policy.
5. Effective date, review, amendments and monitoring
This best execution disclosure statement will be effective
from 31 January 2011 and will be reviewed at least annually. We may amend this best execution disclosure statement as necessary and where a material change has occurred, including changes to the list of execution venues on which we place significant reliance, we will inform you either in writing or by publishing the amended best execution disclosure statement on our website.
We will also monitor our effectiveness in achieving best execution of our client orders on a regular basis.
Trading sessions for the Hong Kong Stock Exchange
Trading is conducted on Monday to Friday (excluding Hong Kong public holidays) at the following Hong Kong times quoted below:
Pre-opening Auction Session 9.30am to 10.00am
Continuous Trading Session
Morning Session 10.00am to 12.30pm
Extended Morning Session 12.30pm to 2:30pm
Afternoon Session 2.30pm to 4.00pm
There is no Extended Morning Session and Afternoon Session on the eves of Christmas, New Year and Lunar New Year. There will be no Extended Morning Session if there is no Morning Session.
Pre-opening Auction Session
At-Auction Order is an order with no specified price and will be executed at the final Indicative Equilibrium Price (IEP) and holds a higher auction matching priority than an At-Auction Limit Order and will be matched in time priority at the final IEP.
Any outstanding At-Auction Orders after the end of the Pre-opening Auction Session will be cancelled before the commencement of the Continuous Trading Session.
At-Auction Limit Order is an order with a specified price. An At-Auction Limit Order with a specified price at or more competitive than the final IEP (in the case of buying, the specified price is equal to or higher than the final IEP, or in the case of selling, the specified price is equal to or lower than the final IEP) may be matched at the final IEP subject to availability of an eligible matching order on the opposite side. An At-Auction Limit Order will be matched in price and time priority at the final IEP. No At-Auction Limit Order will be matched at a price worse that the final IEP.
Any outstanding At-Auction Limit Orders at the end of the Pre-opening Auction Session will be carried forward to the Continuous Trading Session and treated as limit orders provided that the specified price of that At-Auction Limit Order does not deviate nine times or more from the nominal price. Such orders will be put in the price queue of the input price.
Continuous Trading Session
Customers may place Limit Orders, Enhanced Limit Orders and Special Limit Orders during the Continuous Trading Session as long as the order price does not deviate nine times or more from the nominal price and follows the quotation rules unless the restriction is waived.
Limit Order will allow matching only at the specified price. The sell order input price cannot be made at a price above the best ask price, if available.
Any outstanding Limit Order will be put in the price queue of the input price.
Enhanced Limit Order will allow matching of up to five price queues (i.e. the best price queue and up to the 5th queue at four spreads away) at a time provided that the traded price is not worse than the input price. The sell order input price cannot be made at a price of five spreads (or more) below the current bid price, whereas the buy order input price cannot be made at a price of five spreads (or more) above the current ask price.
Any outstanding Enhanced Limit Order will be treated as a Limit Order and put in the price queue of the input price.
Special Limit Order will allow matching of up to five price queues (i.e. the best price queue and up to the 5th queue at four spreads away) at a time provided that the traded price is not worse than the input price. A Special Limit Order has no restriction on the input price as long as the order input is or at or below the best bid price for a sell order or at above the best ask price for a buy order.
Any outstanding Special Limit Order will be cancelled and will not be stored in the system.