Important Notice on Severe Weather Trading Arrangements by Hong Kong Exchanges
Dear Valued Customers,
The Hong Kong Exchanges will implement the Severe Weather Trading Arrangements (SWT) in the Securities and Derivatives Markets starting from 23 September, 2024. This arrangement will apply in the event of a Typhoon Signal No. 8 or above or a Black Rainstorm Warning, or any "Extreme Situation" declared by the Hong Kong SAR government.
Under the SWT, the Securities and Derivatives Markets, including Stock Connect, Derivatives Trading, and After-Hours Trading sessions, will continue maintain normally operations of the Hong Kong securities and derivatives markets during severe weather conditions without suspending trading.
In light of this, SDG Securities (HK) Limited ("the Company") announces the following operational and trading service arrangements during the Severe Weather Trading conditions:
1. During the Severe Weather Trading days, in order to maintain normal trading operations and ensure employee safety, all services will be conducted electronically and remotely. We will make every effort to maintain service levels comparable to regular trading days, barring specified circumstances. All online trading services for system and applications, customer service emails, hotline support, and trading settlement services will remain operational. However, some services may need to be suspended or postponed until next normal trading days due to severe weather restrictions, such as physical stock deposits, cash withdrawals via paper cheques, etc.
2. Due to the Severe Weather Trading Arrangements, securities trading, settlement, and clearing will proceed normally under the SWT, customers should monitor their account status to ensure sufficient funds to avoid any impact on settlement and margin calls. In case of market fluctuations on severe weather trading days, customers should prepare for potential margin calls and ensure they have adequate means to fulfill payment obligations. We encourage clients to use electronic transfer methods (e.g., Faster Payment System ("FPS ") and electronic Direct Debit Authorization ("eDDA ") to deposit funds. If client have any needs or questions, please contact our customer service hotline (Tel: 2825 5030).
Special Arrangements During Severe Weather Trading Days:
1. Trading Services: Trading services will be provided through electronic channels and a dedicated investment trading hotline (hotline: 2825 5030).
2. Settlement Services: Aside from not providing physical stock deposits, all services will follow the guidelines set by the Hong Kong Exchanges. Please refer to the attached document for details.
3. Cheque Clearing and Remittance Services: No clearing services will be available for paper cheques. Cheques deposited before the cutoff time on the previous business day will be cleared depending on bank circumstances, and remittances will be processed according to the bank's services.
4. Margin Financing (Margin Loans): During ongoing trading, if there is a margin shortfall, the Company will send margin call letters as per the usual process. If the collateral value drops significantly and reaches the margin call level, relevant sales staff will communicate with customers regarding margin replenishment. If clients do not take action to replenish or provide a clear plan, the Company will proceed to liquidate collateral as per regulations.
Clients need to understand the impact of the Company's inability to provide certain services during severe weather conditions::
1. Office Support: The Company will not provide office or on-site support during SWT; hence, no on-site signing or physical document storage services will be available.
2. Electronic Trading Setup: Customers should ensure their online or mobile trading devices are set up in advance and regularly check to ensure proper login and operation. Additionally, please ensure that electronic transfer limits are adjusted to appropriate levels to avoid deposit issues.
3. Service Details: Starting from 23 September, 2024, details of affected services and arrangements will be listed in the attached document, which will also be uploaded to the Company’s website for all customers to view.
For more details on the Severe Weather Trading arrangements, please visit the relevant section on the Hong Kong Exchanges website: https://www.hkex.com.hk/Services/Trading-hours-and-Severe-Weather-Arrangements/Severe-Weather-Trading-Arrangements?sc_lang=zh-HK
If you have any questions or need assistance, please contact our customer service hotline (Tel: 2825 5030) or email us at sdgs-cs@sd-gold.hk
Thank you for your continued trust and cooperation.
Sincerely,
SDG Securities (HK) Limited
16 September , 2024
| Operational Arrangements in HK Securities Market | ||
| Trading | Trading arrangements | Same as Business as Usual |
| Stamp duty collection (for any chargeable stamp duty which is collected by SEHK | Same as Business as Usual | |
| Trading of stocks on ex-entitlement date (“ex-date”) due to a corporate action with ex-entitlement arrangement | Same as Business as Usual | |
| Clearing | Clearing, settlement & collateral management | Same as Business as Usual |
| Physical certificate deposit for settlement purpose | No withdrawal or deposit of physical stocks | |
| Order placement and settlement of ETF creation/redemptions | Same as Business as Usual, it is subject to the ETF fund manager’s acceptance on the creation/redemption application on any trading day and their acceptance of extended settlement application on any due date for settlement. | |
| Cash settlement for Structured Products | Same as Business as Usual | |
| Operational Arrangements in Northbound Trading under Stock Connect | ||
| Trading | Trading arrangements | Same as Business as Usual |
| Clearing | Clearing, settlement & collateral management | Same as Business as Usual |
| Operational Arrangements in HK Derivatives Market | ||
| Trading | Trading arrangements | Same as Business as Usual |
| Determination of Final Settlement Price (“FSP”) or Official Settlement Price (“OSP”) | Should be same as Business as Usual unless for cases where the underlying parameters for determining FSP or OSP are not available, then a different process may be determined | |
| Clearing | Clearing, settlement & collateral management | Same as Business as Usual |
| External Arrangements and Infrastructural Changes in Enabling SWT | ||
| Cheque Clearing | Paper cheque clearing | Fund of cheques
deposited on the working day before SWT Day will be available on SWT
Day. No cheques will be cleared during full-day SW when bank branches are not open. |
| If it is not full-day SW, fund of cheques deposited before hoisting or after lowering of SW will be cleared on the SWT Day and be available on the next working day after the day of deposit (SWT Day +1) | ||
| Banking Services for Designated/ Settlement Banks / Custodians | Electronic money transfer channels (SWIFT, CHATS, FPS, Autocredit) | Same as Business as Usual |
| Electronic money transfer limit | Banks will review transfer limit and consider adjustments as needed to support on a SWT Day, subject to risk assessment of each Designated/Settlement Bank | |
| Custodian services by banks | Same as Business as Usual | |
| Corporate Action | ||
| Cash dividend | Dividend payment date | If
issuer pays via electronic means: cash dividend will be paid upon receipt of
the good funds on the same day If issuer pays via paper cheques or other nonelectronic means: HKSCC will arrange payment when SW conditions are cancelled in accordance with HKSCC Operational Procedures |
| Stock dividend / bonus issue | Dividend / bonus issue payment date | Same arrangement as prior to implementation of SWT |
| Election (dividend with scrip and/or currency option) | Deadline for election form return | Same arrangement as prior to implementation of SWT |
| Subscription – instruction submission (e.g. rights issue, open offer, preferential offer, takeover offer) | Deadline for lodging the instructions | Same arrangement as prior to implementation of SWT |
| Stock consolidation and splitting | Effective date | Stock
Consolidation and Splitting will be carried out on SWT Day as
scheduled. HKSCC will arrange the conversion in CCASS as scheduled. |
| Change of board lot | Effective date | Change
of board lot will be carried out on SWT Day as scheduled. HKSCC will arrange the change in board lot in CCASS on SWT Day. |
| Transfer of listing – GEM to Main | First day of dealings on Main Board | First
day of dealings on Main Board will be carried out on SWT Day as
scheduled. HKSCC will arrange the conversion in CCASS as scheduled. |
| Voting | Proxy deadline | Same arrangement as prior to implementation of SWT |