I note a liquidity provider provided a quote in response to a quote request which lasted for 3 minutes only. Has the liquidity provider breached its obligation?

Not necessarily. For example, the quote may have been taken by another market participant or one of the circumstances set out may have arisen:

(a) during a pre-opening session or a closing auction session (if applicable);

(b) during the first 5 minutes of each morning session or the first 5 minutes after trading commences for the first time on a trading day;

(c) when the warrant or CBBC or any underlying asset is suspended from trading for any reason;

(d) when there is no warrant or CBBC available for market making activities;

(e) if the theoretical value of the warrant or CBBC is less than HK$0.01;

(f) in the case of CBBCs only, upon the occurrence of a mandatory call event;

(g) where the underlying asset is an index, if there occurs or exists any suspension of, or limitation imposed on, trading of options or futures contracts relating to the index or if the index level is not calculated or published as scheduled for any reason;

(h) when there are operational and technical problems beyond the control of the liquidity provider that hinder the liquidity provider’s ability to provide liquidity; or

(i) if there is a “fast market” which materially affects the issuer’s hedging ability