Contract Notes, Statements of Accounts and Receipts Rules
Q1 :
Under the single tranche multiple counters arrangement (“STMC Arrangement”)1, trades executed in different trading counters of the same Multi-counter Eligible Security2 (“Stock”) are only recorded under the domain settlement counter3 (e.g., HKD counter) for clearing and settlement purposes in CCASS4. The holdings in any other currency counter(s) (which are not the domain settlement counter) (e.g., RMB counter) are aggregated under the domain settlement counter and recorded as a single holding in CCASS.
Sections 8(2)(b), 11(3)(f) and 12(2)(b) of the Contract Notes Rules5 require intermediaries to show on the statement of account the quantity, and, in so far as readily ascertainable, the market price and market value of each description of client securities and collateral held for a client’s account (as at the end of a day6, the end of a monthly accounting period or the date of the request, as the case may be).
For the purposes of complying with the Contract Notes Rules under the STMC Arrangement:
Are intermediaries required to present the Stock as a single holding aggregated across all currency counters on the statement of account? Or can they show the Stock as separate holdings displayed by currency counter? For example, where an intermediary holds 100 shares of a Stock purchased on the HKD counter and 200 shares of the same Stock purchased on the RMB counter for a client’s account, should the intermediary present the Stock as 300 shares aggregated under the HKD counter, or as 100 shares under the HKD counter and 200 shares under the RMB counter?
If an intermediary presents the Stock as a single holding aggregated across all currency counters (in the above example, as 300 shares under the HKD counter), is the intermediary required to show the closing prices of all relevant trading counters (e.g., HKD and RMB counters) for the Stock?
1The STMC Arrangement takes effect on 30 June 2025. 2 As defined under the General Rules of Hong Kong Securities Clearing Company Limited (“HKSCC”). 3 “Domain settlement counter” means the HKD counter and reflects the stock code of the HKD counter, or another currency counter of a Stock which is from time to time designated by HKSCC to record the aggregated holdings of such Stock. 4 Central Clearing and Settlement System (“CCASS”). 5 Securities and Futures (Contract Notes, Statements of Account and Receipts) Rules (“Contract Notes Rules”). 6 Refers to the day on which an event as specified in section 8(3) of the Contract Notes Rules takes places in relation to the client.
A:
Intermediaries may present the quantity of the Stock held for a client’s account and its closing price(s) either as an aggregated holding across all currency counters, or as separate holdings by currency counter, on the statement of account (as at day end, month end or the date of the request).
Specifically, intermediaries may adopt the following approaches:
As an aggregated holding across all currency counters – by showing the aggregated quantity (in the above example, as 300 shares under the HKD counter), the closing price of a trading counter (e.g., HKD counter) and the corresponding market value of the Stock; intermediaries may also consider including the closing price(s) of other trading counter(s) (e.g., RMB counter) of the Stock; or
As separate holdings by currency counter – by separately stating for each currency counter the quantity, the closing price of the relevant trading counter and the corresponding market value of the Stock (in the above example, as 100 shares under the HKD counter and 200 shares under the RMB counter).
Last update: 30 May 2025
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