HKSI Paper 8 Participants in the markets question: holidays or severe weather

HKSI Paper 8Participants in the markets

Mr Chan buys SEHK shares on Thursday 3 September 2026. With no holidays or severe weather, by when must his broker provide the contract note?

A By the end of Thursday 10 September 2026
B By the end of Friday 4 September 2026
C By the end of Saturday 5 September 2026
D By the end of Monday 7 September 2026

Show the answer and explanation

Answer: D. By the end of Monday 7 September 2026

Section 5(1) of the Securities and Futures (Contract Notes, Statements of Account and Receipts) Rules requires an intermediary that enters into a relevant contract for a client to provide a contract note no later than the end of the second business day after entering into it. Under Schedule 1 to the SFO a business day excludes Saturdays, public holidays (every Sunday is a general holiday) and gale or black rainstorm warning days. Counting from Thursday, Friday 4 September is the first business day and Monday 7 September the second. Friday is one business day short, Saturday counts calendar days, and Thursday 10 September allows five business days. Source: Securities and Futures (Contract Notes, Statements of Account and Receipts) Rules (Cap. 571Q) s.5(1); SFO (Cap. 571) Sch. 1, definition of business day (as at October 2026).

Common mistake

Counting calendar days. Saturdays and Sundays are not business days, so a Thursday trade's contract note is due by the end of Monday.

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Original study material mapped to the public HKSI Paper 8 syllabus. Unofficial, not endorsed by HKSI Institute or the SFC. Verify figures and rules against current guidance before relying on them.