Leading Independent Hong Kong Law Firm

Leveraging more than twenty years of experience serving clients in the financial sector, our firm has carved out a strong standing as the preferred organisation for businesses in search of tailored and inventive legal guidance.

We represent operators of electronic trading platforms and clearing systems.

We have extensive experience acting for platform operators in the offering and operation of electronic facilities in Hong Kong to directly match, route orders and provide clearing and settlement services for trades. This includes in respect of stock trading, the trading of futures and other derivatives, currency and forex trading, commodity trading and virtual asset trading. We represent operators in their dealings with the Securities and Futures Commission (“SFC”) and advise on how to comply with applicable Hong Kong laws and regulations.

WHAT WE CAN DO FOR YOU

Armed with deep insights into our client's industries, Timothy Loh LLP is ready to navigate you through the legal complexities with the following:

Regulatory Requirements

Our work in this area is part of our Financial Services Regulatory practice.
We can assist you with the following:
  • Advising on the application of automated trading services (“ATS”) authorization or licensing requirements under the Securities and Futures Ordinance (“SFO”) and on the application of virtual asset service provider (“VASP”) license requirements under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (“AMLO”)

  • Representation in applications for SFC authorization or licensing as an ATS provider or as a virtual asset trading platform

  • Advising on mandatory trade reporting obligations, trade clearing obligations under the Securities and Futures (OTC Derivative Transactions - Reporting and Record Keeping Obligations) Rules, clearing and record Keeping Obligations under the Securities and Futures (OTC Derivative Transactions)

  • Advising on designation of as a central counterparty, including preparing applications to the SFC for designation as a central counterparty (“CCP”)

  • Advising on the scope of the stock market monopoly given to the Stock Exchange of Hong Kong (“SEHK”) Advising on the classification of investment products as virtual assets, securities or futures contracts

Insolvency Laws

We support your firm in understanding and navigating complex laws governing the relationship between trading and clearing platform operators and its participants. We have advised extensively on insolvency law issues applicable to clearing systems in Hong Kong. In respect of the default of clearing members and a default of the clearing system itself as part of the financial market infrastructure (“FMI”), we can advise on the following:
  • Application of insolvency laws including under the Companies (Winding-up and Miscellaneous Provisions) Ordinance (“CWUMPO”)

  • Application of the Financial Institutions (Resolution) Ordinance (“FIRO”) in the context of the insolvency of a clearing system.

  • We can help review and prepare trading and clearing rules, taking into account agency liability issues and insolvency laws as well as regulatory requirements.

Our strategies seamlessly combine compliance with functionality to enable your firm to reach its goals.

grounded regulatory

COMPLIANCE

Our work in this area is part of our Financial Services Regulatory practice.
We can assist you with the following:
  • Advising on the application of automated trading services (“ATS”) authorization or licensing requirements under the Securities and Futures Ordinance (“SFO”) and on the application of virtual asset service provider (“VASP”) license requirements under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (“AMLO”)

  • Representation in applications for SFC authorization or licensing as an ATS provider or as a virtual asset trading platform

  • Advising on mandatory trade reporting obligations, trade clearing obligations under the Securities and Futures (OTC Derivative Transactions - Reporting and Record Keeping Obligations) Rules, clearing and record Keeping Obligations under the Securities and Futures (OTC Derivative Transactions)

  • Advising on designation of as a central counterparty, including preparing applications to the SFC for designation as a central counterparty (“CCP”).

  • Advising on scope of the stock market monopoly given to the Stock Exchange of Hong Kong (“SEHK”) Advising on the classification of investment products as virtual assets, securities or futures contracts

creative financial

SOLUTIONS

We support your firm in understanding and navigating complex laws governing the relationship between trading and clearing platform operators and its participants. We have advised extensively on insolvency law issues applicable to clearing systems in Hong Kong. In respect of the default of clearing members and a default of the clearing system itself as part of the financial market infrastructure (“FMI”), we can advise on the following:
  • Application of insolvency laws including under the Companies (Winding-up and Miscellaneous Provisions) Ordinance (“CWUMPO”)

  • Application of the Financial Institutions (Resolution) Ordinance (“FIRO”) in the context of the insolvency of a clearing system.

  • We can help review and prepare trading and clearing rules, taking into account agency liability issues and insolvency laws as well as regulatory requirements.

Our strategies seamlessly combine compliance with functionality to enable your firm to reach its goals.

Let us arrange an appointment with our award-winning lawyers for your case

Contact Us

HOW WE OPERATE

Our pursuit of excellence anchors the firm’s sophisticated approach.

We blend steadfast professionalism with our relentless dedication, enabling us to provide exceptional legal services.

Our practices are encapsulated within these domains:

Authorization
& Licensing

Authorization
& Licensing

We put our clients first when guiding them through SFC requirements for authorization or licensing as an ATS provider or licensing as a VATP and navigating market monopolies. We clarify and simplify complex processes, ensuring alignment with regulatory expectations and business objectives.

Trading &
Clearing Operations

Trading &
Clearing Operations

We offer comprehensive advice on Hong Kong laws applicable to clearing systems, including the effect of potential defaults and impact on financial market infrastructure under CWUMPO and FIRO. We provide guidance relevant to relevant SFC administered rules in relation to reporting of trades. We prepare trading and clearing rules.

Virtual Assets

Virtual Assets

We provide robust solutions for direct order matching, routing, and clearing and settlement provide guidance on the classification of virtual assets, whether as securities, futures or otherwise, and on compliance with SFC guidelines in respect of virtual asset trading platforms.

In Trading & Clearing Platforms, our practice has been recognised by:

“Leading Practice”

“Leading Practice”

“Firm Principal as Leading Lawyer”

OUR EXPERIENCE

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