Securities & Futures Commission of Hong Kong

Code of Conduct

Trading practices


How are bonds listed on the SEHK traded?


Bonds listed on the SEHK are traded on the SEHK in the same way as other listed stocks and warrants where firms trade in an agency capacity and generally charge a commission for such transactions.


How are bonds not listed on the SEHK traded?


Firms trading in bonds that are not listed or traded on any exchange typically trade in a principal capacity and quote their own bid/offer price, which often includes a mark-up/mark-down over the price obtained from the market or counterparty. In these cases, these firms should disclose the fact that they are trading as principal and would generally not charge a commission.

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