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Agenda

Operating Features ( Quote Request Function) Provision of Derivative Warrant Liquidity Lawrence Fok HKEx Deputy Chief Operating Officer 28 November 2001. Agenda. Derivative Warrant Liquidity Provider (DWLP) Provision of Derivative Warrant Liquidity Trading Devices for DWLP

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Agenda

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  1. Operating Features(Quote Request Function) Provision of Derivative Warrant Liquidity Lawrence FokHKEx Deputy Chief Operating Officer28 November 2001 - 1 -

  2. Agenda • Derivative Warrant Liquidity Provider (DWLP) • Provision of Derivative Warrant Liquidity • Trading Devices for DWLP • Emergency / Backup Arrangement • Obligations and Non-Compliance • Information Dissemination • Q & A Session - 2 -

  3. (1) Derivative Warrant Liquidity Provider (DWLP) • DWLP must be an Exchange Participant • DWLP must be appointed by Issuer • An issuer may appoint more than one DWLP for different issues • Each derivative warrant can only have one DWLP • A DWLP can quote more than one issues for the same or different issuers • Each DWLP assigned with a unique broker ID - 95xx - 3 -

  4. (2) Provision of Derivative Warrant Liquidity • Each DWLP acts an agent for the issuer • by automatching and reporting of manual/cross trades • quotation rule - not applicable • short selling - not allowed • transaction fee/charges - same • trading hours - same • CCASS settlement - same • trading terminal page - no change except broker ID 95xx and phone number(s) on free text area • existing listed derivative warrants - not applicable - 4 -

  5. (3) Trading Devices for DWLP • Only through a separate DW Open Gateway (“OG”) / DW AMS Terminal for order / trade input of derivative warrants. • DW OG - Two standard throttles (i.e. two orders per second) assigned for the first 5 warrants. • DW AMS Terminal - Two terminals for the first 5 warrants. • One standard throttle / terminal provided for the next 5 additional derivative warrants (i.e. 6-10, 11-15 etc.) • Cost of trading devices borne by DWLP - 5 -

  6. (4) Emergency / Backup Arrangement • Backup DWLP • Backup devices - an existing OG - a separate standby terminal • Only activated upon request by issuer/broker during emergency - 6 -

  7. (5) Obligations & Non-Compliance • Obligations per Issuers’ listing document • Suspend the issuer from further issuance • Disconnect DW OG / DW AMS Terminal - 7 -

  8. (6) Information Dissemination • Daily report to the Stock Exchange • - trading warrant • - newly listed warrant - 8 -

  9. Q & A Session - 9 -

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