Service arrangements for Hong Kong securities and derivatives markets during severe weather conditions

 According to the Consultation Conclusions on Severe Weather Trading of Hong Kong Securities and Derivatives Markets published by Hong Kong Exchanges and Clearing Limited (HKEX), the Severe Weather Trading (“SWT”) arrangements will be implemented on 23 September 2024¹.

In line with these arrangements, Funderstone will continue to support trading activities, including online and phone trades, provide customer support, and conduct limited clearing and settlement operations on SWT days². However, Funderstone’s business premises will be closed to the public; therefore, on-site services such as in-person client account openings, deposit/withdrawals of cheque or physical scrip will not be available.

For fund deposits and withdrawals during SWT days, Funderstone will exclusively facilitate electronic transfers. Clients are encouraged to pre-deposit funds into their accounts if they anticipate challenges with electronic transfers on SWT days.

As settlement services will persist during SWT, clients are advised to ensure they have sufficient funds to meet any outstanding amounts due, including margin calls, on SWT days (referred to as “Settlement Obligation”). Funderstone reserves the right to initiate forced liquidation of a client’s account portfolio if the Settlement Obligation is not fulfilled.

Relevant changes have been updated in the client’s “Terms and Conditions for Trading Account”. For details, please refer to the Funderstone website: https://funderstone.com/customer-service/forms-documents/?lang=en/

For information regarding the SWT arrangements issued by the HKEX, please consult the official updates from the Hong Kong Exchange:
https://www.hkex.com.hk/News/Market-Communications/2024/240618news?sc_lang=en

¹Severe weather refers to the scenario where a typhoon signal No. 8 or above or a black rainstorm warning is issued by the Hong Kong Observatory, or an “extreme conditions” announcement is made by the HKSAR Government.
²The services will be affected by the feasibility and arrangements of Funderstone’s counterparties or service providers.