Brokerage / Securities Trading Client Agreement

The 'Brokerage / Securities Trading Client Agreement' is a document that establishes a legal agreement between the account job company and the client. It is important as it outlines the terms and conditions for the client's cash securities trading account. The document begins with a title that clearly identifies its purpose.

 

The content of the document starts with an introduction that states the consideration for opening and maintaining the cash securities trading account. It mentions that the account job company will act as the client's agent or broker for executing orders to buy or sell securities. The agreement is subject to certain terms and conditions.

 

The first section of the document highlights that all transactions in securities will be subject to the relevant provisions of the constitution, rules, regulations, by-laws, customs, and usages of the exchange. It emphasizes the importance of complying with the laws and regulations governing securities trading.

 

The second section mentions that transactions executed on the floor of the exchange will be subject to transaction levies and other levies imposed by the exchange. The account job company is authorized to collect these levies according to the exchange's rules.

 

The third section states that the rules of the exchange, particularly those related to trading and settlement, will be binding on both the account job company and the client. This ensures that both parties understand and adhere to the exchange's rules.

 

The fourth section addresses the consequences of default by the account job company. It states that if the account job company commits a default and the client suffers a pecuniary loss, the client's right to claim will be restricted to the extent provided for under any compensation or insurance arrangements.

 

The fifth section establishes a general lien on any securities held for the client's account. This lien serves as security for the client's obligations to the account job company arising from the business of dealing in securities. If the client defaults in making a payment, the account job company is authorized to transfer and sell the securities to satisfy the general lien.

 

The document continues with additional sections that cover various aspects of the client agreement, such as the completeness and accuracy of account opening information, personal credit enquiries, safekeeping of securities, dividends and distributions, restrictions on using securities as collateral, confidentiality, open market purchases, interest on overdue balances, risk disclosure, acceptance of the agreement, non-enforcement by third parties, and jurisdiction clause.

 

In summary, the 'Brokerage / Securities Trading Client Agreement' is a comprehensive document that establishes the terms and conditions for a client's cash securities trading account. It covers important aspects such as compliance with exchange rules, transaction levies, default consequences, lien on securities, and various other provisions to protect the interests of both the account job company and the client.

How to use this document?

To use the 'Brokerage / Securities Trading Client Agreement', follow these steps:

1. Review the entire document carefully to understand its purpose and the terms and conditions it establishes for the cash securities trading account.

2. Ensure that all the required information is accurately filled in the agreement, including the account job company's and client's details, such as names, addresses, and identification/passport numbers.

3. Familiarize yourself with the relevant provisions of the constitution, rules, regulations, by-laws, customs, and usages of the exchange mentioned in the agreement. Comply with these provisions when engaging in securities transactions.

4. Be aware of the transaction levies and other levies imposed by the exchange. Understand that the account job company is authorized to collect these levies according to the exchange's rules.

5. Understand that both the account job company and the client are bound by the rules of the exchange, particularly those related to trading and settlement. Adhere to these rules to ensure smooth transactions.

6. Take note of the consequences of default by the account job company. Understand that the client's right to claim will be restricted to the extent provided for under any compensation or insurance arrangements.

7. Be aware of the general lien on securities held for the client's account. Understand that if the client defaults in making a payment, the account job company is authorized to transfer and sell the securities to satisfy the general lien.

8. Ensure that the account opening information form is complete, true, and correct. Notify the account job company of any changes in the information.

9. Authorize the account job company to conduct a personal credit enquiry or check to ascertain the client's financial situation and investment objectives.

10. Understand the options for registering securities in the client's name or the name of the account job company's nominee, as well as the safe custody arrangements for securities.

11. Be aware that any dividends, distributions, or benefits accruing from securities not registered in the client's name will be credited to the client's account or paid as agreed.

12. Provide consent before the account job company deposits any securities as security for loans or advances or lends or otherwise parts with the possession of such securities.

13. Understand the account job company's obligation to keep confidential matters relating to the client's account, while acknowledging that the account job company may provide details of the account to the exchange if requested for investigation or enquiry purposes.

14. Be aware of the account job company's responsibility in case of open market purchases following the failure of the selling broker to deliver on the settlement date.

15. Understand the interest payment obligations on overdue balances and the applicable interest rate.

16. Acknowledge the risks associated with securities trading, including price fluctuations, potential losses, and risks related to custody and collateral.

17. Confirm that you have read and understood the agreement, and accept its contents.

Please note that this guidance provides a general overview of using the 'Brokerage / Securities Trading Client Agreement'. It is recommended to consult legal professionals or experts for specific advice and to ensure compliance with applicable laws and regulations.