Legal Notes for Futures Trading

Understand all the legal, fixed income and further information for futures trading at ADSS Hong Kong with the following notes. Everything from trade execution times to payment details and legal responsibilities of ADSS Hong Kong and our customers are included in these notes for reference. 

Become acquainted with all the legal information you may need when trading futures. Contact addresses for reporting inaccuracies and other issues are provided within these notes, so you can get in touch whether you are already trading with ADSS Hong Kong or considering it in the future. Read through the following notes so you know where you stand when trading futures with ADSS Hong Kong. 

Notes

  1. Most stock exchange transactions settle on the trade date plus three business days. Options, futures, and US open-end mutual fund transactions settle on trade date plus one business day. (Some exchanges and other transaction types may have longer or shorter settlement periods. For instance, stock transactions on XETRA settle on trade date plus two business days.) Ending settled cash reflects the cash that has actually settled.
  2. Initial and maintenance margin requirements are available within the Account Window of the ADSS TREX.
  3. Quantities preceded by a “-” sign indicate sell transactions. Other transactions are purchases.
  4. In case of partial executions, commissions are charged on the total quantity executed on the original order. The commission is displayed on the first partial execution only.
  5. Each closed lot indicated above with a reference to note (6) was chosen by the end of the trading day to be sold versus the specific opening purchase identified in that row.
  6. Trade execution times are displayed in Eastern Time.
  7. Trade execution times are displayed in United State Eastern Time.
  8. Borrow Fee Rate represents the cost to borrow stock expressed in percent per annum. It is applied to the cash collateral amount on the stock borrow contract and is separate from any interest earned on credit cash balances. Similarly, Loan Fee Rate represents the benefit to lend stock. A positive rate indicates a cost to the borrower/benefit to the lender and a negative rate indicates a benefit to the borrower/cost to the lender. In general, the fee rates for hard-to-borrow stocks are higher than for normal availability stocks.
  9. The closing prices on this Activity Statement are indicative and may come from third-party sources. ADS Securities Hong Kong Limited does not warrant the accuracy of the prices provided by third-party sources.

Fixed Income Notes

  1. Call features for bonds or preferred stocks may affect the yield. For zero coupon, compound interest and multiplier securities, there are no periodic payments and securities may be callable below maturity value without notice to holder unless registered. For asset-backed securities, the actual yield may vary depending on the speed at which the underlying note is pre-paid. For additional information regarding bond yield, please contact the ADSS HK customer service at: [email protected]. If this debt security is unrated by a nationally recognized statistical rating organization, it may pose a high risk of default. You should consult a financial advisor to determine whether unrated bonds are appropriate for your portfolio in light of your goals and your financial circumstances.

Legal Notes

  1. Please promptly report any inaccuracy or discrepancy in this statement, or in your account. Contact the ADSS HK Customer Service Department by email. You may also contact ADSS HK by phone, but if you report an error by phone, you should re-confirm such oral communication by email in order to protect your rights.
    ADS Securities Hong Kong Limited, http://www.adss.com/, +852 3185 0900
  2. ADS Securities Hong Kong Limited is located at 3/F Prosperity Tower, 39 Queen’s Road Central, Central, Hong Kong
  3. Unless otherwise noted, ADS Securities Hong Kong Limited acted as agent in the execution of the above transactions.
  4. For security futures trades, if not already indicated on this statement, information about the time of any transaction, the identity of the counterparty to the transaction, and whether ADSS HK is acting as agent or principal, as agent for the counterparty, as agent for both parties to the contract, or as principal, and if acting as principal, whether the transaction was a block transaction or an exchange for physicals transaction, will be available upon written request of the customer.
  5. Customer is requested to promptly advise ADS Securities Hong Kong Limited of any material change in the customer’s investment objectives or financial situation.
  6. Interactive Brokers LLC (SFC CE# AEX264) and Interactive Brokers Hong Kong Limited (SFC CE# ADI249) provide execution, clearing and carrying services for your account pursuant to an agreement with ADS Securities Hong Kong Limited.
  7. For all options trades executed on the Stock Exchange of Hong Kong (“SEHK”): (a) Options can involve a high degree of risk and may not be suitable for every investor. Investors should ensure they understand those risks before participating in the options market. (b) All options contracts executed on the SEHK were executed by SEHK were executed by Interactive Brokers Hong Kong Limited. (c) In the event of a default committed by Interactive Brokers resulting in the client suffering any pecuniary loss, the client shall have a right to claim under the Investor Compensation Fund established under the Hong Kong Securities and Futures Ordinance, subject to the terms of the Investor Compensation Fund from time to time. (d) All Exchange Traded Options Business made for or on behalf of a client shall be subject to the relevant provisions of the constitution, Rules of The Stock Exchange of Hong Kong Limited (“SEHK Rules”), regulations, the Articles, customs and usages of SEHK, the Options Trading Rules, the Clearing Rules of SEOCH, the CCASS Rules and the laws of Hong Kong, which shall be binding on both Interactive Brokers and the client.