Hong Kong brokerage Guotai Junan prepares for launch of investor identification for Northbound trading under Stock Connect

Maria Nikolova

Upon the launch of the NB Investor ID Model, Guotai Junan is required to assign a unique Broker-to-Client Assigned Number to each of its Northbound trading clients and provide Client Identification Data to the Stock Exchange of Hong Kong on or before the prescribed T-1 day.

Hong Kong-based online trading company Guotai Junan International Hold. Limited (HKG:1788) has sought to prepare its clients about the new requirements it faces with regard to the launch of investor identification for Northbound trading under Stock Connect.

In a notice on its website, the brokerage says that, upon the launch of the NB Investor ID Model, Guotai Junan Securities (Hong Kong) Limited is required to assign a unique Broker-to-Client Assigned Number (BCAN) to each of its Northbound trading clients and provide Client Identification Data (CID) to the Stock Exchange of Hong Kong on or before the prescribed T-1 day. After such information has passed the relevant validation check, the client will be allowed to place NB orders on T day.

The brokerage advises investors to complete, sign and return the “PERSONAL INFORMATION COLLECTION STATEMENT (for Individual / Joint Account)” or “PERSONAL INFORMATION COLLECTION STATEMENT (for Corporate /Institutional Account)” 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.

Last week, the Hong Kong Exchanges and Clearing Limited (HKEX) unveiled the launch details of the investor identification model for Northbound trading (NB Investor ID Model) through its mutual stock market access program with the exchanges in Shanghai and Shenzhen (Stock Connect). The HKEX announcement was released after market regulators said the model will be launched on September 17, 2018.

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.

Under the current Stock Connect arrangement between Hong Kong and the Mainland exchanges, regulators enquire EPs about an investor’s identity when necessary. Implementation of the NB Investor ID Model is anticipated to lead to more efficient Hong Kong-Mainland cross-border market surveillance.

Read this next

Digital Assets

Binance upgrades Bahrain license to offer full-suite of crypto services

The Central Bank of Bahrain (CBB) has granted Binance its Category 4 license as a fully-fledged crypto-asset service provider (CASP).

Digital Assets

BitMEX spot exchange hits $24 million in daily volume

The newly-launched spot market of crypto exchange BitMEX reported a record of $24 million in 24-hour trade activity on May 25.

Retail FX

Financial Commission certifies offering of trade copier 4X Solutions

The Financial Commission, an independent self-regulatory compliance specialist for the financial services industry, has certified the trading technology offered by trade copier 4X Solutions.

Industry News, Inside View

LIVE from Devexperts webinar for brokers on Fractional Trading

Finance Feeds is providing live coverage of the event that aims to help brokers discover fractional shares as a key tool for a successful brokerage business in today’s trading industry.

Industry News, Retail FX

ASIC celebrates retail ban on binary options as 68% of wholesale clients lose money

In the 13 months before the ban, between 74% and 77% of active retail clients lost money trading binary options. The product intervention order does not apply to wholesale clients.

Crypto Insider

Investing in crypto: how to stay away from weak players

The main reason behind the hacks of crypto exchanges is weak key management. For example, all 4 hacks that took place in 2021 were caused by the ability of hackers to obtain access to hot wallets. 

Retail FX

Vantage launches swap-free gold XAUUSD trades for all clients until end of July

“As the greenback continues to strengthen, we want to support traders who remain bullish on gold or seek short term trading opportunities amid the volatility”

Industry News

Broadridge launches ESG reporting solution ahead of European regulation SFDR

The Broadridge managed solution for EET adds to existing Broadridge services, including European PRIIPs Template, European MiFID Template, Solvency II Tripartite Template and many more across the European jurisdictions.

Industry News

iCapital to acquire embedded structured investment platform SIMON

SIMON’s platform, SPECTRUM, is a multi-dimensional allocation analysis and portfolio construction tool designed to evaluate how structured investments and/or annuities may fit into a portfolio. 

<