Chapter 3 of 615% of exam
Participants in the Markets
The cast of the securities market: brokers, traders, research analysts, institutional and retail investors, custodians, share registrars, HKEX and its subsidiaries, and the regulators.
Who does what
Brokers execute client orders; custodians hold and safeguard securities and settle trades; research analysts publish recommendations and must disclose conflicts and avoid misleading the market. Institutional investors (pension funds, insurers, asset managers) invest large pooled sums, in contrast to retail investors. HKEX and its subsidiaries operate the exchanges and clearing houses, while the SFC and HKMA are the statutory regulators of the securities markets and banks respectively.