### Securities and Futures Ordinance 《證券及期貨條例》

95. Authorization for providing automated trading services
(1) No person shall—
(a) provide automated trading services; or
(b) offer to provide automated trading services,
unless that person—
(i) is authorized under subsection (2);
(ii) is an employee or agent of a person authorized under subsection (2), and is acting in that capacity for or on behalf of that person;
(iii) is an intermediary licensed or registered for Type 7 regulated activity;
(iv) is a licensed representative for Type 7 regulated activity, and is acting in that capacity for the licensed corporation to which the representative is accredited; or
(v) is an individual whose name is entered in the register maintained by the Monetary Authority under section 20 of the Banking Ordinance (Cap. 155) as that of a person engaged in respect of Type 7 regulated activity by a registered institution registered for that regulated activity, and is acting in that capacity for the registered institution.
(2) Where the Commission is satisfied that it is appropriate to do so, the Commission may upon application by a person, by notice in writing served on that person, authorize that person to provide automated trading services—
(a) subject to such conditions as it considers appropriate specified in the notice; and
(b) with effect from a date specified in the notice for the purpose.
(3) Where a person is granted an authorization under subsection (2), the Commission shall cause notice of that fact to be published in the Gazette.
(4) Where a person is seeking an authorization to provide automated trading services and the Commission is minded not to grant the authorization under subsection (2), the Commission shall give the person a reasonable opportunity of being heard before making a decision not to grant the authorization.
(5) Where the Commission refuses to authorize a person to provide automated trading services under subsection (2), the Commission shall, by notice in writing served on the person, inform the person of the refusal and of the reasons for it.
(6) The Commission shall prepare and publish in the Gazette or otherwise guidelines setting out the principles, procedures and standards in relation to authorization for providing automated trading services under this section.
(7) Guidelines published under subsection (6) are not subsidiary legislation.
(8) Subject to subsection (9), for the purposes of subsection (1)(b), a person offers to provide automated trading services only if the services are actively marketed, whether in Hong Kong or elsewhere, to persons in Hong Kong by the first-mentioned person or by another person on his behalf.
(9) For the purposes of subsection (1)(b), a person shall not be regarded as offering to provide automated trading services if the persons to whom the offer is made are persons to whom the first-mentioned person or a related corporation thereof, at any time during the period of 3 years immediately preceding the day on which the offer is made, has provided or has agreed to provide any financial services, including automated trading services.

### Securities and Futures Ordinance 《證券及期貨條例》

96. Application for authorization
(1) An application under section 95(2) shall be accompanied by—
(a) such information and particulars as the Commission may reasonably require; and
(b) an application fee prescribed by rules made under section 395 for the purposes of this section.
(2) Without limiting the generality of subsection (1)(a), an application under section 95(2) shall also be accompanied by such information as may reasonably be required by the Commission regarding—
(a) the services and facilities which the applicant will hold itself out as being able to provide if the application is allowed;
(b) the business which the applicant proposes to carry on and to which the application relates, and any person whom the applicant proposes to employ or with whom the applicant intends to be associated in the course of carrying on the business;
(c) the business which the applicant is carrying on, the officers it employs and the persons with whom the applicant is associated in the course of carrying on the business; and
(d) its directors and substantial shareholders and, if any of its substantial shareholders is a corporation, the directors and substantial shareholders of that corporation.
(3) In considering an application under section 95(2), the Commission may have regard to any information in its possession whether provided by the applicant or not.

### Securities and Futures Ordinance 《證券及期貨條例》

97. Conditions for authorization
(1) Without limiting the generality of conditions which may be specified in a notice under section 95(2), the Commission may, by notice in writing served on a person authorized under that section, amend or revoke any conditions specified under that section or impose new conditions, where the Commission is satisfied that it is appropriate to do so.
(2) Where the Commission amends or revokes any condition or imposes any new condition under subsection (1), the amendment, revocation or imposition takes effect at the time of service of the notice or at the time specified in the notice, whichever is the later.
(3) Without limiting the generality of subsection (1) or section 95(2), a notice served thereunder may contain a condition that the person authorized to provide automated trading services shall comply with all or any of the following requirements, that is to say, the person shall—
(a) provide the services according to rules approved by the Commission for the purpose;
(b) ensure as far as is reasonably practicable that there is an orderly, informed and fair market in relation to all transactions which are carried out by means of or through the services;
(c) ensure that the securities or futures contract, the sale or purchase of which is to be negotiated or concluded by means of or through the services, belongs to a class of securities or futures contracts specified in the notice by the Commission for this purpose;
(d) ensure that the transaction that is to be novated, cleared, settled or guaranteed by means of or through the services belongs to a class of transactions specified in the notice by the Commission for this purpose;
(e) disclose to the Commission within the time and in the manner specified in the notice, such information as the Commission may request for the purpose of performing its functions under this Ordinance;
(f) permit any person authorized in that behalf by the Commission to enter at any reasonable time the premises on which the services are provided and to inspect the electronic facilities by means of which the services are provided;
(g) provide and maintain automated systems with adequate capacity, facilities to meet contingencies or emergencies, security arrangements and technical support for the provision of the services;
(h) notify the Commission of any changes to the information and particulars required by the Commission under section 96(1) or (2);
(i) pay to the Commission a fee prescribed by rules made under section 395 for the purposes of this section.

### Securities and Futures Ordinance 《證券及期貨條例》

98. Withdrawal of authorization
(1) Subject to subsection (4), where the Commission is satisfied that it is appropriate to do so in the interest of the investing public or in the public interest, it may, by notice in writing served on a person who has been granted an authorization under section 95(2), stating the reasons in support of the ground or grounds for the notice, withdraw the authorization with effect from a date specified in the notice for the purpose.
(2) The Commission may by the notice served under subsection (1) permit the person to continue, on or after the date on which the withdrawal is to take effect, to carry on such activities affected by the withdrawal as the Commission may specify in the notice for the purpose of—
(a) ceasing to provide the automated trading services to which the withdrawal relates; or
(b) protecting the interest of the investing public or the public interest.
(3) Where the Commission has granted a permission to a person under subsection (2), the person shall not, by reason of its carrying on the activities in accordance with the permission, be regarded as having contravened section 95.
(4) The Commission shall not exercise its power under subsection (1) in relation to a person who has been granted an authorization under section 95(2) unless it has given the person a reasonable opportunity of being heard.
(5) Where the Commission withdraws an authorization under subsection (1), it shall cause notice of that fact to be published in the Gazette.
(6) A notice served under this section shall take effect immediately.