Mandatory electronic filing of disclosure of interests notifications under the Hong Kong Securities and Futures Ordinance – impact on margin financing transactions

Disclosure of interests (DI) filings under Part XV of the Securities and Futures Ordinance (Cap. 571) are required to be done electronically from 3 July 2017. The Securities and Futures Commission has prescribed new DI forms which contain more precise codes for the relevant events triggering a disclosure. In particular, new event codes are created for security enforcement when a lender has taken steps to enforce its rights in the shares they hold by way of security.

We discuss in this Bulletin how the new DI forms may assist margin lenders with cleansing any inside information it may have on enforcement.

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