Clause 7

by inserting, immediately before the word “trades” in subsection (1)(b)(ii), the words “in relation to the business of futures trading,”;

by deleting subsection (2) and substituting the following subsection:“(2) The following persons shall, subject to compliance with such requirements as the Authority may by regulations prescribe, be exempted from subsection (1):

a person who carries on the business of leveraged foreign exchange trading only with accredited investors but not with any other person;

a person who carries on the business of trading in futures contracts or leveraged foreign exchange trading for his own account or for the account of a related corporation or related person;

a person who is licensed under the Securities Industry Act [Cap. 289] or who is exempt under that Act or any regulations made thereunder from holding such a licence and who trades in futures contracts or enters into leveraged foreign exchange trading wholly in connection with and solely incidental to the purchase or sale of securities or for the purpose of hedging a portfolio of securities.”; and

by inserting, immediately after subsection (3), the following subsection:“(4) For the purposes of this section, “related person”, in relation to an individual, means —

the individual’s spouse, son, adopted son, step-son, daughter, adopted daughter, step-daughter, father, mother, brother or sister; and

a firm or a corporation in which the individual or any of the persons mentioned in paragraph (a) has control of not less than 50% of the voting power in the firm or corporation, whether such control is exercised individually or jointly.”.