According to Section 35 of Chapter 571 of the Securities and Futures Ordinance, Securities and Futures (Contracts Limits and Reportable Positions) Rules, Enhanced Regulation of LOPR in Index Futures and Options, unless authorized, a declaration to the exchange is required when a customer's account holds options contracts in excess of the large open position reporting level.
Stock option classes (with the same underlying, the same option class) with aggregate after-hours positions of more than 1,000 shares require declaration.
(1) When customers who open an account in FUTU hold positions reaching the reporting level, FUTU will act as an agent to report on behalf of customers and customers do not need to do any operation.
(2) When the combined positions of multiple brokers reach the reporting level, the customer may entrust any one of the brokers as an agent to make a unified report to the Exchange, or authorize the brokers to report their positions to the Exchange separately.
(1) The rules on the large open positions and position limits for derivatives shall be subject to the announcement of the regulatory authority: https://www.hkex.com.hk/Services/Trading/Derivatives/Overview/Trading-Mechanism/Large-Open-Positions-and-Position-Limits?sc_lang=en
(2) Guidance Note on Position Limits and Large Open Position Reporting Requirements: https://www.sfc.hk/web/TC/assets/components/codes/files-current/zh-hant/guidelines/guidance-note-on- position-limits-and-large-open-position-reporting-requirements/guidance-note-on-position-limits-and-large-open-position-reporting-requirements/guidance-note requirements.pdf