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The Broker to Broker Agreement is essential for financial institutions operating in Hong Kong's securities markets who wish to establish formal cooperation arrangements with other licensed brokers. This document is particularly relevant when brokers need to facilitate cross-trading activities, share commissions, or establish referral arrangements while ensuring compliance with Hong Kong's regulatory framework. The agreement addresses key regulatory requirements under the Securities and Futures Ordinance, including licensing obligations, client protection measures, and compliance with SFC guidelines. It is commonly used when expanding business networks, entering new market segments, or establishing strategic partnerships within Hong Kong's financial services industry.

1. Parties: Identification of the contracting broker firms, including their regulatory status and licensing details

2. Background: Context of the agreement and brief description of the parties' businesses and intended cooperation

3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation

4. Scope of Agreement: Nature and extent of the broker-to-broker relationship and services to be provided

5. Regulatory Compliance: Mutual obligations regarding SFC regulations, licensing requirements, and other applicable laws

6. Representatives and Warranties: Fundamental promises about licensing status, authority, and compliance with laws

7. Operating Procedures: Day-to-day operational procedures for inter-broker transactions and communications

8. Fees and Commission Sharing: Financial arrangements between the brokers, including fee structures and payment terms

9. Confidentiality and Data Protection: Obligations regarding client data, trade information, and general confidentiality

10. Risk Allocation and Indemnities: Distribution of risks and responsibilities between the parties

11. Term and Termination: Duration of the agreement and circumstances for termination

12. General Provisions: Standard clauses including notices, amendments, governing law, and dispute resolution