Compensation Limits

Scenario 2 - Holder of both securities and futures accounts

Mr. Cheung holds shares worth HK$600,000 as at the default date deposited at ABC Brokerage Firm and has also deposited HK$300,000 cash at ABC Brokerage Firm for futures contracts trading. What is the compensation limit for Mr. Cheung if ABC Brokerage Firm defaulted?

Based on the per-investor compensation limit of HK$500,000 for each of his securities and futures contracts account respectively, the maximum compensation amount for Mr. Cheung would be HK$500,000 for the securities account and HK$300,000 for the futures contracts trading, that is, a total of HK$800,000 compensation would be paid.