The Transaction Broker Agreement serves as the primary contractual framework for establishing and governing the relationship between licensed brokers and their clients in Hong Kong's financial markets. This document is essential when a broker begins providing transaction services to new clients, whether individual or institutional. It encompasses crucial elements required by the Securities and Futures Commission (SFC) of Hong Kong, including service terms, fee structures, risk disclosures, and compliance requirements. The agreement must align with Hong Kong's regulatory framework, particularly the Securities and Futures Ordinance and related regulations, while providing clear guidelines for transaction execution, reporting, and dispute resolution. This document is fundamental for ensuring regulatory compliance while protecting both broker and client interests in the Hong Kong financial services context.

1. Parties: Identification of the broker and client, including licensing and registration details

2. Background: Context of the agreement and brief description of the broker's services

3. Definitions: Key terms used throughout the agreement, including regulatory and technical terms

4. Scope of Services: Detailed description of brokerage services to be provided

5. Broker's Rights and Obligations: Legal and operational responsibilities of the broker

6. Client's Rights and Obligations: Client's responsibilities and obligations in the relationship

7. Fees and Commissions: Structure and calculation of fees, commissions, and other charges

8. Transaction Execution: Procedures and terms for executing trades and transactions

9. Risk Disclosure: Mandatory risk warnings and disclosures as required by SFC

10. Compliance with Laws: Obligations regarding regulatory compliance and AML requirements

11. Confidentiality: Protection and handling of confidential information

12. Term and Termination: Duration of agreement and termination provisions

13. Liability and Indemnification: Limitations of liability and indemnification obligations

14. Dispute Resolution: Procedures for handling disputes and applicable jurisdiction

15. General Provisions: Standard boilerplate clauses including notices, amendments, and assignments