Dealing in Capital Markets products
Who is exempt from the requirement to hold a capital markets services licence to deal in OTC derivatives contracts?
Persons who are exempted under Paragraph 3A(1) of the Second Schedule, Securities and
Futures (Licensing and Conduct of Business) Regulations.
Persons who are exempted under Paragraph 3A(1) of the Second Schedule, Securities and
Futures (Licensing and Conduct of Business) Regulations, including but not limited to the
following, subject to specified conditions and restrictions:
a. A person who carries on business in dealing in such capital markets products for his own
account or an account belonging to and maintained wholly for the benefit of a related
corporation and with a related corporation or a specified licensed or registered entity;
b. A person who carries on business in dealing in such capital market products of which the
underlying thing is a commodity, with accredited investors, expert investors, or
institutional investors only; and
c. A person whose dealing in such capital markets products is solely incidental to his
carrying on business in fund management.
Paragraph 3A(1) of the Second Schedule, Securities and Futures (Licensing and Conduct of
Business) Regulations