Licence

Regulated activity

Examples

Type 1

Dealing in securities

        (1)  Trading /broking stock options for clients;

        (2)  Trading bonds for clients;

        (3)  Buying / selling mutual funds and unit trusts for       clients;

        (4)  Placing and underwriting of securities.

Type 2

Dealing in futures contracts

        (1)  Trading / broking index or commodities futures for       clients;

        (2)  Buying / selling futures contracts for clients.

Type 3

Leveraged foreign exchange trading

        (1)  Buying / selling foreign exchange for clients on a       margin basis.

Type 4

Advising on securities

        (1)  Giving investment advice to clients relating to the sale       / purchase of securities;

        (2)  Issuing research reports / analyses on securities.

Type 5

Advising on futures contracts

        (1)  Giving investment advice to clients relating to the sale       / purchase of futures contracts;

        (2)  Issuing research reports on futures contracts.

Type 6

Advising on corporate finance

        (1)  Acting as sponsor for listing applicant in an initial       public offering;

        (2)  Advising on the Codes on Takeovers and Mergers and       Shares Repurchases;

        (3)  Advising listed companies on compliance of Listing       Rules.

Type 7

Providing automated trading services

        (1)  Operating an electronic trading platform for matching       client orders.

Type 8

Securities margin financing

        (1)  Providing financing to clients for their purchase of       stocks in return for clients’ stocks as collaterals.

Type 9

Asset management

        (1)       Managing a portfolio of securities or futures contracts    for clients on discretionary basis;

         (2)  Managing funds on discretionary basis.

Licence

Regulated activity

Examples

Type 10

Providing credit rating services

        (1)       Preparing reports on the credit worthiness of       companies, bonds and sovereigns.