The following table shows the details of two trades executed by Sha Tin Securities with the same counterparty. Sha Tin 20184473 Principal Trade reference Transaction type Trading book Trade date Value date Operation Quantity Security Price Counterparty Sha Tin 20184466 Principal 26th November 28th November Buy 8,000 Hang Seng Bank HKD 176.00 David Securities Trade reference Transaction type Trading book Trade date Value date Operation Quantity Security Price Counterparty x 26th November 28th November Sell 14,000 Hang Seng Bank HKD 177.00 David Securities The security and cash positions records dated 25th November are given below: Hang Seng Bank Ownership Location Trading book X x +17,000 -17,000 Custodian Forever Bright +17,000 -17,000 Hong Kong Dollars Ownership Trading book X +6,060,000.00 -6,060,000.00 +6,060,000.00 -6.060,000.00 Location Custodian Forever Bright Suppose Sha Tin Securities selects the same custodian Forever Bright to handle the settlement of the two trades above. ...to be continued Required: (a) If Sha Tin Securities and David Securities has bilateral netting agreement, use the following template to prepare the pre-settlement trade record as at 26th November (after the trades) for the security position and cash position. Show the positive sign and/or negative sign properly in your record. (2 marks) Hang Seng Bank Ownership Location Hong Kong Dollars Ownership Location The following table shows the details of two trades executed by Sha Tin Securities with the same counterparty. Sha Tin 20184473 Principal Trade reference Transaction type Trading book Trade date Value date Operation Quantity Security Price Counterparty Sha Tin 20184466 Principal 26th November 28th November Buy 8,000 Hang Seng Bank HKD 176.00 David Securities Trade reference Transaction type Trading book Trade date Value date Operation Quantity Security Price Counterparty x 26th November 28th November Sell 14,000 Hang Seng Bank HKD 177.00 David Securities The security and cash positions records dated 25th November are given below: Hang Seng Bank Ownership Location Trading book X x +17,000 -17,000 Custodian Forever Bright +17,000 -17,000 Hong Kong Dollars Ownership Trading book X +6,060,000.00 -6,060,000.00 +6,060,000.00 -6.060,000.00 Location Custodian Forever Bright Suppose Sha Tin Securities selects the same custodian Forever Bright to handle the settlement of the two trades above. ...to be continued Required: (a) If Sha Tin Securities and David Securities has bilateral netting agreement, use the following template to prepare the pre-settlement trade record as at 26th November (after the trades) for the security position and cash position. Show the positive sign and/or negative sign properly in your record. (2 marks) Hang Seng Bank Ownership Location Hong Kong Dollars Ownership Location
