Calculation of the Compensation Amount

Scenario 2 - Securities trading II

Ms. Lee's securities portfolio:

 I. Securities traded on the Stock Exchange of Hong Kong Limited
 
 Securities Name 
Quantity of 
Securiities 
Purchase prices 
(HKD) 
Total 
(HKD) 
 Pink Company
4,000 
$55.00 
$220,000 
 Green Company
32,000 
$8.50 
$272,000 
 Brown Company
20,000 
$1.20 
$24,000 
 Cost of investment $516,000 
 
 II. Securities traded on the Shanghai Stock Exchange purchased through
      the northbound link under a Stock Connect arrangement
 
 Securities Name 
Quantity of 
Securiities 
Purchase price 
(CNY) 
Total 
(CNY) 
 White Company
8,000 
$16.00 
$128,000 
 Cost of investment $128,000 



Suppose ABC Brokerage Firm defaults on 2/1/202X, then the closing prices of the securities on the default date are used to calculate the compensation amount:

 
 Securities Name 
Quantity of 
Securiities 
Closing Prices on 
2/1/202X 
Total 
(HKD) 
 Pink Company
4,000 
HKD$40.00 
$160,000 
 Green Company
32,000 
HKD$7.00 
$224,000 
 Brown Company
20,000 
HKD$0.70 
$14,000 
 White Company
8,000 
CNY$10.00 
(exchange rate:
1CNY=1.11HKD)
$88,800 
 Value of investment $486,800 



Ms. Lee receives a compensation amount of HK$486,800

A claimant would receive a compensation amount with full value of the securities as calculated on the default date.