When an order is routed to SEHK through a chain of RRIs, does every intermediary in that chain need to prepare and assign a BCAN to the same order? Will there be many BCANs tagged to one order when it is routed through the chain of RRIs?
No, only one BCAN shall be tagged to an order and transmitted along the intermediating chain of brokers to SEHK. The last RRI in the chain (starting with the EP and working backwards) shall be the party responsible for assigning the BCAN, collecting CID, preparing and submitting the BCAN-CID Mapping File to SEHK. Other RRIs along the intermediating chain should ensure that the order it receives and passes along has the BCAN (which is assigned by the last RRI in the chain) tagged to it. Please see below as an example.
If an EP receives securities orders from multiple RRIs, each of which maintains only one securities trading account with the EP but has a number of underlying clients who will place securities orders via each RRI’s single securities trading account, are the orders placed through the same RRI securities trading account tagged with the same BCAN?
No. The last RRI in the chain (starting with the EP and working backwards) assigns BCAN to its Relevant Client, who is the first non-RRI client in the chain. Orders placed through different client securities trading accounts with this RRI should be tagged with a different BCAN. When the RRI routes these orders from multiple clients to an EP or through a chain of intermediating RRIs to SEHK, the BCAN of the client orders should not be changed. Please see below an example.
Last update: 26 Nov 2021