Code of Conduct and Practice

Code of Conduct and Practice

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Fubon Bank (Hong Kong) Limited (“FBHK”) Standard Foreign Exchange Terms of Dealing

Fubon Bank (Hong Kong) Limited (“FBHK”)
Standard Foreign Exchange Terms of Dealing

This notice sets out our standard business practices and some of the key aspects of the relationship between FBHK and its clients (together with other market participants, “counterparties”) when dealing with FBHK in foreign exchange (FX) products, where FBHK transacts as a dealer or market maker, on a principal basis in the FX market. It is intended to supplement other disclosures concerning the terms and conditions of FX transactions with FBHK. This notice does not affect or reduce our legal or regulatory obligations to our clients.

Principal Trading

Unless otherwise specified, FBHK deals as principal, acting as an arm’s-length party to transactions with our clients. As principal, FBHK does not act as the agent, fiduciary or financial advisor or in any similar capacity on behalf of its clients and therefore FBHK does not assume any of the responsibilities that would be associated with such roles.

FBHK is dedicated to upholding a high level of integrity and adhering to the requirements published by the relevant regulatory bodies and international groups in our dealings with counterparties by any means (whether on an open telephone line or other means of communications). Nonetheless, FBHK and its clients or counterparties may have divergent or conflicting interests in certain circumstances. FBHK does not enter into transactions with the intention of disrupting the market functioning or hindering the price discovery process.

Orders Execution

FBHK’s receipt or acceptance of a trade request from clients indicates its willingness to complete the requested FX transaction (in whole or in part), subject to prevailing liquidity, market conditions and other relevant factors, at or near the price requested. It does not create a contract between FBHK and the client that commits FBHK to execute any or all of the orders or trade request in any particular way. Unless otherwise specifically agreed, FBHK will exercise its reasonable discretion in deciding, whether to work an order, which orders it would be willing to execute all or part of the order, when it would be willing to execute them, and how it would execute them, unless we have otherwise expressly agreed to do so. Client will assume the market risk at the point of successful order execution, no matter the order is partially or completely filled, manually or via the online banking or mobile banking channels.

When we receive client’s order by electronic means, we will have the time stamped at time of receipt and again at time of acceptance. Orders received manually or by phone will be time stamped as soon as reasonably practicable after receipt of the order. When amendment or cancellation instruction is received, further time stamp will be applied at the point it is triggered. Time stamp will be applied as soon as practicable when an order is executed by FBHK.

Where a client submits a trade request via the online banking or mobile banking channels, FBHK will conduct pre-deal price check automatically to ensure that client only transacts at a price within the tolerance range of the current price quoted by FBHK before the trade is accepted. If the trade request is declined, an error message will be shown to the client.

Further, FBHK may look for market opportunities that satisfy both a price for execution of a client’s order and earn a reasonable return for that activity while managing and prioritizing other interests, positions and executions for FBHK and other clients. FBHK retains its discretion with respect to how to satisfy its clients, including with respect to order execution, aggregation, priority and pricing.

Potential Conflicts of Interest

From time to time, FBHK manages the competing interests in a portfolio of positions for multiple clients, as well as FBHK’s interests, each of whose interests may diverge from those of other clients. The nature of the FX market and the role of FBHK as other banks in such market give rise to potential conflicts of interest that cannot be completely eliminated.

FBHK trading personnel may seek to anticipate near-term client demand for management of client’s activity, and take positions in connection with its risk management activities, with the objective of providing sufficient inventory to service its clients.

Under certain circumstances, FBHK may hold positions or trade in a way that may not be aligned with the objectives of an individual client. Given that FBHK plays the dual role of dealer and market maker in the FX market, FBHK may in certain circumstances: (i) affect the execution of the FX transactions, such as barriers, stop loss orders or other limit orders, or affect the level at which FX benchmarks are set through its trading activity; and (ii) enter into transactions according to the requirements of its expected and/or actual order book, taking into account the prevailing market conditions and the size of orders, in order to effectively support its clients’ proposed and/or actual activity.

In circumstances where conflict of interest arise, FBHK will manage its activities through the relevant policies, procedures and other controls it has in place to mitigate those conflicts. FBHK may also in its discretion decline to act in such circumstances.

Client Confidentiality

Protecting client confidential information and security of counterparty information is an important part of our policy. FBHK recognizes that the clients with whom we transact entrust FBHK with important information (“Confidential Information”) and disclosure of such Confidential Information may be detrimental to the interests of clients in certain circumstances. FBHK makes use of the Confidential Information internally on a need to know basis to effectuate transactions, to meet FBHK’s internal risk management (including but not limited to mitigating and hedging against risk and expected near-term demand), legal and compliance needs and for related purposes. FBHK may also share the information about client activities amongst FBHK sales and trading personnel and may use such information, on any anonymized and aggregate basis, internally and communicates it to clients as needed in managing FX risks and entering into FX transactions.

However, nothing herein shall in any way be construed as limiting or precluding FBHK from disclosing Confidential Information as required under applicable law or as required by regulatory or public authorities. FBHK has policies and controls in place that are designed to protect such Confidential Information and ensure it is not disclosed or used improperly.

Basis for FX prices and order execution

FBHK strives to offer consistently competitive prices to its clients. When pricing client transactions, FBHK will take into account a number of factors, including but not limited to: (i) the risks that FBHK will take on and assume when transacting with the client, such as FBHK's risk appetite, business strategy, positions and risk management costs, and the specific terms of the transaction; (ii) the cost of capital and funding related costs as a result of the transaction; (iii) execution and transaction costs such as clearing, settlement and other delivery costs, documentation and legal costs, and regulatory costs and taxes; (iv) support services provided to the client such as non-standard execution, trade structuring and related research; (v) prevailing market conditions; (vi) the liquidity and competitiveness of the relevant FX market; (vii) FBHK’s relationship with the client, taking into account factors specific to that client; and/or any pre-agreed fee/spread charges.

The impact of each of the above factors upon the price of a transaction will differ depending upon the prevailing market conditions and specific circumstances of that transaction. Accordingly, FBHK may offer different prices to different clients for the same or similar type of transaction based on the factors above, depending on whether we are providing quotes and indicative prices, or executing an order on behalf of a client.

Quotes and indicative prices

Unless otherwise agreed, any firm or indicative price quoted by FBHK to a client is an “all-in” price, inclusive of any margin applied to the price at which FBHK may be able to transact in the market, whether the price is quoted by sales, trading or other personnel. FBHK is not under any obligation to disclose the specific amount of any bid-ask spread and/or mark-up to a client unless otherwise required by law.

It is the client’s obligation to ensure that he or she is satisfied with the indicative or firm price and/or other terms of any transaction with FBHK prior to the transaction being executed.

At FBHK, we are committed to maintain a high level of integrity and treating all our clients fairly. If you have questions about this notice, please contact your FBHK representative.

This notice is also available at and may be updated from time to time in order to address changing regulatory, industry and other developments. If you have questions after reading this notice or concerning FBHK’s dealings with you, we encourage you to contact your FBHK representative.
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Fubon Bank (Hong Kong) Limited (the “Bank”) has established internal guidelines and procedures on order execution in respect of bonds and structured products transactions. A disclosure statement summarizing the aforesaid and setting out the Bank’s standard business practices, carve out situation and arrangement relating to the exclusive use of affiliates, connected parties and third parties (where applicable) when dealing in bonds and structured products is available upon request. Please contact your account officer if needed.
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Fubon Bank (Hong Kong) Limited (the “Bank”) has established internal guidelines and procedures on order execution in respect of securities transactions. A disclosure statement summarizing the aforesaid and setting out the Bank’s standard business practices and arrangement relating to the exclusive use of affiliates, connected parties and third parties (where applicable) when dealing in securities is available upon request. Please contact your account officer if needed.
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