RISK OF MARGIN TRADING. The risk of loss in financing a transaction by deposit of collateral is significant. The Customer may sustain losses in excess of the cash and any other assets deposited as collateral with the Company. Market conditions may make it impossible to execute contingent orders, such as “stop-Ioss” or “stop-limit” orders. The Customer may be called upon at short notice to make additional margin deposits or interest payments. If the required margin deposits or interest payments are not made within the prescribed time, the Customer’s collateral may be liquidated without the Customer’s consent. The Customer should closely monitor the Customer’s positions, as in some market conditions the Company may be unable to contact the Customer or provide the Customer with sufficient time to make the required deposits, and forced liquidation may be necessary. Moreover, the Customer will remain liable for any resulting deficit in the Customer’s account and interest charged on the account. The Customer should therefore carefully consider whether such a financing arrangement is suitable in light of the Customer’s own financial position and investment objectives. There is risk if the Customer provides the Company with authority that allows it to apply the Customer’s Securities or securities collateral pursuant to a securities borrowing and lending agreement, repledge the Customer’s securities collateral for financial accommodation or deposit the Customer’s securities collateral as collateral for the discharge and satisfaction of its settlement obligations and liabilities. If the Customer’s Securities or securities collateral are received or held by the Company, the above arrangement is allowed only if the Customer consents in writing. Moreover, the authority must specify the period for which it is current and be limited to not more than 12 months. The Customer has the discretion not to give the Customer Securities Standing Authority set out under Clause 5 of Schedule 5 by giving a written notice to the Company in the circumstances provided for under either Clause 5.1 or Clause 5.7 of Schedule 5. Additionally, the Customer Securities Standing Authority set out under Clause 5 of Schedule 5 (if it is not revoked prior to its expiry) may be renewed for one or more further periods but not exceeding 12 months. Such Customer Securities Standing Authority shall be deemed to be renewed (i.e. without the Customer’s further consent) if the Company issues the Customer a reminder at least 14 days prior to the expiry of the authority and the Customer does not object to such deemed renewal before the expiry date of the then existing authority. The Customer is not required by any law to sign and give the Customer Securities Standing Authority set out under Clause 5 of Schedule 5, but an authority may be required by the Company, for example, to facilitate margin lending to the Customer or to allow the Customer’s Securities or securities collateral to be loaned to or deposited as Collateral with third parties. The Company should explain to the Customer the purpose for which client securities standing authority is to be used. If the Customer sign and give the Customer Securities Standing Authority set out under Clause 5 of Schedule 5 and the Customer’s Securities or securities collateral are lent to or deposited with third parties, those third parties will have lien or charge on the Customer’s Securities or securities collateral. Although the Company is responsible to the Customer for the Customer’s Securities or securities collateral lent or deposited under the authority, a default by it could result in the loss of Customer’s Securities or securities collateral. A cash account not involving securities borrowing and lending is available from the Company. If the Customer does not require margin facilities or does not wish the Customer’s Securities or securities collateral to be lent or pledged, the Customer should not sign the above authorities and should only ask to open the aforesaid type of cash account.
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Samples: Securities Trading Account Agreement, Securities Client Agreement, Securities Client Agreement
RISK OF MARGIN TRADING. The risk of loss in financing a transaction by deposit of collateral is significant. The Customer Client may sustain losses in excess of the his cash and any other assets deposited as collateral with the CompanyBroker. Market conditions may make it impossible to execute contingent orders, such as “stop-Iossloss” or “stop-stop limit” orders. The Customer Client may be called upon at short notice to make additional margin deposits or interest payments. If the required margin deposits or interest payments are not made within the prescribed time, the CustomerClient’s collateral may be liquidated without the Customer’s his consent. The Customer should closely monitor the Customer’s positions, as in some market conditions the Company may be unable to contact the Customer or provide the Customer with sufficient time to make the required deposits, and forced liquidation may be necessary. Moreover, the Customer Client will remain liable for any resulting deficit in the Customer’s his account and interest charged on the his account. The Customer Client should therefore carefully consider whether such a financing arrangement is suitable in light of the Customer’s his own financial position and investment objectives. There is risk if the Customer Client provides the Company Broker with an authority that allows it to apply the CustomerClient’s Securities securities or securities collateral pursuant to a any securities borrowing and lending agreement, repledge re- pledge the CustomerClient’s securities collateral for financial accommodation or deposit the CustomerClient’s securities collateral as collateral for the discharge and satisfaction of its settlement obligations and liabilities. If the CustomerClient’s Securities securities or securities collateral are received or held by the CompanyBroker in Hong Kong, the above arrangement is allowed only if the Customer Client consents in writing. Moreover, unless the Client is a professional investor, the Client’s authority must specify the period for which it is current and be limited to not more than 12 months. The Customer has If the discretion Client is a professional investor, these restrictions do not to give the Customer Securities Standing Authority set out under Clause 5 of Schedule 5 by giving a written notice to the Company in the circumstances provided for under either Clause 5.1 or Clause 5.7 of Schedule 5apply. Additionally, the Customer Securities Standing Authority set out under Clause 5 of Schedule 5 (if it is not revoked prior to its expiry) Client’s authority may be renewed for one or more further periods but not exceeding 12 months. Such Customer Securities Standing Authority shall be deemed to be renewed (i.e. without the CustomerClient’s further written consent) if the Company Broker issues the Customer Client a reminder at least 14 days prior to the expiry of the authority authority, and the Customer Client does not object to such deemed renewal before the expiry date of the Client’s then existing authority. The Customer Client is not required by any law to sign and give the Customer Securities Standing Authority set out under Clause 5 of Schedule 5, but these authorities. But an authority may be required by the CompanyBroker, for example, to facilitate margin lending to the Customer Client or to allow the CustomerClient’s Securities securities or securities collateral to be loaned to or deposited as Collateral collateral with third parties. The Company the Broker should explain to the Customer Client the purpose purposes for which client securities standing authority one of these authorities is to be used. If the Customer sign Client signs one of these authorities and give the Customer Securities Standing Authority set out under Clause 5 of Schedule 5 and the Customer’s Securities his securities or securities collateral are lent to or deposited with third parties, those third parties will have a lien or charge on the CustomerClient’s Securities securities or securities collateral. Although the Company Broker is responsible to the Customer Client for the Customer’s Securities his securities or securities collateral lent or deposited under the authority, a any default by it could result in the loss of Customerthe Client’s Securities securities or securities collateral. A cash account not involving securities Securities borrowing and lending is available from most dealers including the CompanyBroker. If the Customer Client does not require margin facilities or does not wish the Customer’s his Securities or securities collateral to be lent or pledged, the Customer Client should not sign provide the above authorities and should only ask to open the aforesaid this type of cash account.
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RISK OF MARGIN TRADING. The risk of loss in financing a transaction by deposit of collateral is significant. The Customer Client may sustain losses in excess of the Client’s cash and any other assets deposited as collateral with the CompanyPC Securities Limited. Market conditions may make it impossible to execute contingent orders, such as “"stop-Ioss” loss" or “"stop-limit” " orders. The Customer Client may be called upon at short notice to make additional margin deposits or interest payments. If the required margin deposits or interest payments are not made within the prescribed time, the CustomerClient’s collateral may be liquidated without the CustomerClient’s consent. The Customer should closely monitor the Customer’s positions, as in some market conditions the Company may be unable to contact the Customer or provide the Customer with sufficient time to make the required deposits, and forced liquidation may be necessary. Moreover, the Customer Client will remain liable for any resulting deficit in the CustomerClient’s account and interest charged on the Client’s account. The Customer Client should therefore carefully consider whether such a financing arrangement is suitable in light of the CustomerClient’s own financial position and investment objectives. Ri sk of xxxxx xx xx an authori t y t o repl edge the Cli ent’s securi ti es coll ateral etc . There is risk if the Customer Client provides the Company PC Securities Limited with an authority that allows it to apply the CustomerClient’s Securities securities or securities collateral pursuant to a securities borrowing and lending agreement, repledge the CustomerClient’s securities collateral for financial accommodation or deposit the CustomerClient’s securities collateral as collateral for the discharge and satisfaction of its settlement obligations and liabilities. If the CustomerClient’s Securities securities or securities collateral are received or held by the CompanyPC Securities Limited in Hong Kong, the above arrangement is allowed only if the Customer Client consents in writing. Moreover, unless the Client is a professional investor, the Client’s authority must specify the period for which it is current and be limited to not more than 12 months. The Customer has If the discretion Client is a professional investor, these restrictions do not to give the Customer Securities Standing Authority set out under Clause 5 of Schedule 5 by giving a written notice to the Company in the circumstances provided for under either Clause 5.1 or Clause 5.7 of Schedule 5apply. Additionally, the Customer Securities Standing Authority set out under Clause 5 of Schedule 5 (if it is not revoked prior to its expiry) Client’s authority may be renewed for one or more further periods but not exceeding 12 months. Such Customer Securities Standing Authority shall be deemed to be renewed (i.e. without the CustomerClient’s further written consent) if the Company PC Securities Limited issues the Customer Client a reminder at least 14 days prior to the expiry of the authority authority, and the Customer Client does not object to such deemed renewal before the expiry date of the Client’s then existing authority. The Customer Client is not required by any law to sign and give the Customer Securities Standing Authority set out under Clause 5 of Schedule 5, but these authorities. But an authority may be required by the CompanyPC Securities Limited, for example, to facilitate margin lending to the Customer Client or to allow the CustomerClient’s Securities securities or securities collateral to be loaned lent to or deposited as Collateral collateral with third parties. The Company PC Securities Limited should explain to the Customer Client the purpose purposes for which client securities standing authority one of these authorities is to be used. If the Customer sign and give the Customer Securities Standing Authority set out under Clause 5 Client signs one of Schedule 5 these authorities and the CustomerClient’s Securities securities or securities collateral are lent to or deposited with third parties, those third parties will have a lien or charge on the CustomerClient’s Securities securities or securities collateral. Although the Company PC Securities Limited is responsible to the Customer Client for the Customer’s Securities securities or securities collateral lent or deposited under the Client’s authority, a default by it could result in the loss of Customerthe Client’s Securities securities or securities collateral. A cash account not involving securities borrowing and lending is available from the CompanyPC Securities Limited. If the Customer Client does not require margin facilities or does do not wish the CustomerClient’s Securities securities or securities collateral to be lent or pledged, the Customer Client should not sign the above authorities and should only ask to open the aforesaid this type of cash account.
Appears in 1 contract
Samples: Client Agreement
RISK OF MARGIN TRADING. The risk of loss in financing a transaction by deposit of collateral is significant. The Customer Client may sustain losses in excess of the his cash and any other assets deposited as collateral with the CompanyBroker. Market conditions may make it impossible to execute contingent orders, such as “stop-Iossloss” or “stop-stop limit” orders. The Customer Client may be called upon at short notice to make additional margin deposits or interest payments. If the required margin deposits or interest payments are not made within the prescribed time, the CustomerClient’s collateral may be liquidated without the Customer’s his consent. The Customer should closely monitor the Customer’s positions, as in some market conditions the Company may be unable to contact the Customer or provide the Customer with sufficient time to make the required deposits, and forced liquidation may be necessary. Moreover, the Customer Client will remain liable for any resulting deficit in the Customer’s his account and interest charged on the his account. The Customer Client should therefore carefully consider whether such a financing arrangement is suitable in light of the Customer’s his own financial position and investment objectives. There is risk if the Customer Client provides the Company Broker with an authority that allows it to apply the CustomerClient’s Securities securities or securities collateral pursuant to a any securities borrowing and lending agreement, repledge re- pledge the CustomerClient’s securities collateral for financial accommodation or deposit the CustomerClient’s securities collateral as collateral for the discharge and satisfaction of its settlement obligations and liabilities. If the CustomerClient’s Securities securities or securities collateral are received or held by the CompanyBroker in Hong Kong, the above arrangement is allowed only if the Customer Client consents in writing. Moreover, unless the Client is a professional investor, the Client’s authority must specify the period for which it is current and be limited to not more than 12 months. The Customer has If the discretion Client is a professional investor, these restrictions do not to give the Customer Securities Standing Authority set out under Clause 5 of Schedule 5 by giving a written notice to the Company in the circumstances provided for under either Clause 5.1 or Clause 5.7 of Schedule 5apply. Additionally, the Customer Securities Standing Authority set out under Clause 5 of Schedule 5 (if it is not revoked prior to its expiry) Client’s authority may be renewed for one or more further periods but not exceeding 12 months. Such Customer Securities Standing Authority shall be deemed to be renewed (i.e. without the CustomerClient’s further written consent) if the Company Broker issues the Customer Client a reminder at least 14 days prior to the expiry of the authority authority, and the Customer Client does not object to such deemed renewal before the expiry date of the Client’s then existing authority. The Customer Client is not required by any law to sign and give the Customer Securities Standing Authority set out under Clause 5 of Schedule 5, but these authorities. But an authority may be required by the CompanyBroker, for example, to facilitate margin lending to the Customer Client or to allow the CustomerClient’s Securities securities or securities collateral to be loaned to or deposited as Collateral collateral with third parties. The Company the Broker should explain to the Customer Client the purpose purposes for which client securities standing authority one of these authorities is to be used. If the Customer sign Client signs one of these authorities and give the Customer Securities Standing Authority set out under Clause 5 of Schedule 5 and the Customer’s Securities his securities or securities collateral are lent to or deposited with third parties, those third parties will have a lien or charge on the CustomerClient’s Securities securities or securities collateral. Although the Company Broker is responsible to the Customer Client for the Customer’s Securities his securities or securities collateral lent or deposited under the authority, a any default by it could result in the loss of Customerthe Client’s Securities securities or securities collateral. A cash account not involving securities Securities borrowing and lending is available from most dealers including the CompanyBroker. If the Customer Client does not require margin facilities or does not wish the Customer’s his Securities or securities collateral to be lent or pledged, the Customer Client should not sign provide the above authorities and should only ask to open the aforesaid this type of cash account.. S CHEDULE 2
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