11. Regulation 39 of the principal Regulations is amended —(a) | by deleting sub-paragraph (c) of paragraph (1); and | (b) | by inserting, immediately after paragraph (2), the following paragraphs:“(3) Subject to paragraph (4), the holder of a capital markets services licence to deal in securities, trade in futures contracts or carry out leveraged foreign exchange trading shall —(a) | as soon as practicable upon the receipt of a customer’s order for —(i) | securities quoted on a securities exchange, an overseas securities exchange or a recognised trading system provider; | (ii) | futures contracts; or | (iii) | foreign exchange in connection with leveraged foreign exchange trading, |
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or the receipt of any amendment or cancellation of such an order, prepare and keep a written record of — |
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“(A) | the particulars of the customer’s instruction in the order; | (B) | the date and time of receipt of the order, amendment or cancellation; and | (C) | where the order, amendment or cancellation is transmitted to a member of a securities exchange, a futures exchange, an overseas securities exchange or an overseas futures exchange, or to the trading floor of such exchange, the date and time the order, amendment or cancellation is transmitted; |
“(b) | as soon as practicable upon the receipt of a customer’s order for other securities, or the receipt of any amendment or cancellation of such an order, prepare and keep a written record of —(i) | the particulars of the customer’s instruction in the order; and | (ii) | the date of receipt of the order or of any amendment or cancellation of the order; and |
| (c) | as soon as practicable upon the execution of a customer’s order for securities, futures contracts or foreign exchange in connection with leveraged foreign exchange trading, prepare and keep a written record of the particulars of the transaction and —(i) | in the case of an order for —(A) | securities quoted on a securities exchange, an overseas securities exchange or a recognised trading system provider; | (B) | futures contracts; or | (C) | foreign exchange in connection with leveraged foreign exchange trading, |
the date and time of execution of the order or amended order, if any; or |
| (ii) | in the case of an order for other securities, the date of execution of the order or amended order, if any. |
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(4) Paragraph (3) shall not apply to the holder of a capital markets services licence to trade in futures contracts in respect of a transaction by an arbitrageur or a market-maker for the purchase or sale of futures contracts specified by a futures exchange if —(a) | the arbitrageur or market-maker, as the case may be, has given prior written consent for the holder not to prepare and keep the records as required in paragraph (3); | (b) | the transaction is executed on the trading floor; and | (c) | the transaction is entered into in accordance with the business rules or practices of the futures exchange. |
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(5) In this regulation —“arbitrageur” means a person who —(a) | is appointed, approved or registered by a futures exchange as an arbitrageur in respect of futures contracts specified by the futures exchange; and | (b) | purchases or sells any futures contract specified by the futures exchange in a futures market together with an off-setting sale or purchase of the same or equivalent contract in a different market at as nearly the same time as practicable for the purpose of taking advantage of a difference in prices in the 2 markets; |
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“market-maker” means a person who —(a) | is appointed, approved or registered by a futures exchange as a market-maker in respect of futures contracts specified by the futures exchange; | (b) | enters into transactions for the purchase or sale of futures contracts specified by the futures exchange for his own account; | (c) | regularly publishes bona fide competitive bid and offer quotations in respect of futures contracts specified by the futures exchange; and | (d) | is ready, willing and able to effect transactions at his quoted prices with other persons in respect of futures contracts specified by the futures exchange.”. |
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