HKEX urges China Connect Exchange participants and Trade-through Exchange participants to submit newly required data

Maria Nikolova

They are advised to submit the mapping data of Broker-to-Client Assigned Number and Client Identification Data for their clients as soon as possible.

Further to an earlier announcement by Hong Kong Exchanges and Clearing Limited (HKEX) concerning the investor identification model for Northbound trading (NB Investor ID Model), the Exchange has today posted an update on the matter.

In the document released today, HKEX reminds China Connect Exchange Participants (CCEPs) and Trade-through Exchange Participants (TTEPs) to prepare for the Northbound (NB) Investor ID model launch, which is scheduled for September 17, 2018. These entities are already allowed to submit the mapping data of Broker-to-Client Assigned Number (BCAN) and Client Identification Data (CID) for their clients. CCEPs and TTEPs are strongly advised to submit the mapping data as soon as possible, in order to allow sufficient time to rectify any error encountered during the registration process with the Mainland authorities.

CCEPs and TTEPs have to submit only production data to the secure file transfer protocol (SFTP) server. Submission of testing data to SFTP is strictly prohibited, HKEX warns.

Under the NB Investor ID Model, Exchange Participants (EPs) that offer Northbound trading services are required to assign a unique number in a standard format, known as the Broker-to-Client Assigned Number (BCAN), to each of their Northbound trading clients. They also have to provide Client Identification Data (CID) to HKEX, which will forward the information to Mainland exchanges. BCANs and CID – the two main components of the NB Investor Model – are for regulators’ market surveillance only, HKEX notes.

Implementation of the NB Investor ID Model is poised to lead to more efficient Hong Kong-Mainland cross-border market surveillance.

Some companies have already sought to comply with the new requirements. In a notice on its website, Guotai Junan Securities (Hong Kong) Limited has informed its clients about the pending changes. The brokerage advises investors to complete, sign and return certain forms on or before September 13, 2018, as a written consent to provide personal data under Stock Connect in accordance with the Statement. Otherwise, the clients will not be allowed to place buy orders on T day, and the company would only be able to execute sell orders of their existing stocks holding under Stock Connect from September 17, 2018.

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