Position Limits - Guide to Reporting Levels
What are Reporting Levels?
Reporting Levels are unique among them, as crossing a Reporting Level requires action from the position holder. Contrast this to Position Limits and Accountability Levels, which do not require any action (Position Limits must never be breached, and Accountability Levels exist as a 'warning' type of alert).
What action is required by Reporting Levels?
As the name suggests, if a position reaches a Reporting Level, a report must be made to the relevant regulator.
The Reporting Levels monitored in FundApps relate to the Hong Kong jurisdiction.
Many clients have brokerage services that fill the necessary reports on their behalf. Check with your broker to see whether they will file these reports, or whether the obligation falls to you.
How do I fulfill my obligations from crossing a Reporting Level?
If the reporting obligation falls to you, you should file a Large Open Positions (LOP) report with HKFE/SEHK - whichever the relevant market. The LOP report is found at this link under the heading, LOP Report Templates.
The LOP report should be submitted electronically via ECP. The links to do are found at this link under the heading Electronic Submission of LOP report.
The LOP report must be submitted no later than 12:00 noon of the next business day after the positions are opened or accumulated.
You must continue to file a LOP report for as long as the HKFE Participant / Options Exchange Participant holds positions in excess of the Reporting Level.
For more information about the HK reporting limits, please see the FAQ on the subject at this link.