Common use of Position Limits and Reportable Large Open Position Clause in Contracts

Position Limits and Reportable Large Open Position. (a) The Client is bound by the HKFE Rules which permits HKFE to take steps to limit the positions or require the closing out of contracts on behalf of the clients who, in the opinion of HKFE are accumulating positions which are or may be detrimental to any particular market(s) or which capable of adversely affecting the fair and orderly operation of any of the market(s) operated by HKFE. GTJAF, at any time in its sole discretion or as required by the relevant rules and regulations, may limit the number of positions, which the Client may maintain or acquire through GTJAF. The Client agrees not to exceed the position limits established by the HKFE or any other exchange or by GTJAF on any contract type, whether acting alone or with others, and to promptly advise GTJAF if the Client is required to file any reports on positions under the Securities and Futures (Contracts Limits and Reportable Positions) Rules (Cap.571Y) directly to the HKFE or through GTJAF as an agent to make the report on its behalf. (b) In the event that the Client holds or controls a reportable position in accounts at more than one agents, the Client has the sole responsibility to notify HKFE of the reportable position. If the Client decides to submit the notice of the reportable position to HKFE through GTJAF as an agent to submit such notice on the Client’s behalf, the Client should notify GTJAF and provide its total positions held at other agents so that GTJAF can submit the notice of reportable position to the HKFE on its behalf. Alternatively, the Client shall instruct all agents (including GTJAF) to separately report positions in each of its accounts to the HKFE even though positions in the individual accounts may not exceed the reportable level. The Client is advised to understand the prescribed limits of relevant contracts on the website of The Stock Exchange of Hong Kong Limited. GTJAF has no obligation to report to the HKFE any positions held or controlled by the Client with other agents or participants of the HKFE. Unless otherwise accepted by GTJAF in writing to submit such notice on the Client’s behalf, GTJAF shall not be responsible for Client’s reporting obligations of Client’s reportable positions held at other agents. (c) The Client shall file the large open position report by the next trading day (whether it is a Hong Kong public holiday or not) following the day on which the Client first holds or controls the reportable positions and each succeeding day on which the Client continues to hold or control the reportable positions. The Client should submit the large open position report by using a prescribed form by 12:00 noon on the reporting day. (d) The Client hereby acknowledges and agrees to provide GTJAF immediately upon request of HKFE with any details of transactions/positions in other markets (e.g. OTC market) underlying the reportable positions held by GTJAF on behalf of the Client. Failure to provide such information to the HKFE could lead to the imposition of position limits other than the prescribed limits according to the HKFE Rules. (e) The Client hereby acknowledges the responsibilities of reporting and shall comply with all reporting and/or position limit requirements set out in this Agreement, the HKFE Rules, the Securities and Futures (Contracts Limits and Reportable Positions) Rules, the Guidance Note on Position Limits and Large Open Position Reporting Requirements issued by the SFC and any other applicable rules, regulations or guidelines of any exchanges and/or regulatory authorities (including but not limited to the Chicago Mercantile Exchange, The Chicago Board of Trade, the New York Mercantile Exchange, the Commodity Exchange Inc and the Commodity Futures Trading Commission).