Measures taken to strengthen securities and futures market
Article Abstract:
The Government announced to launch 30-point measures to strengthen the order and transparency of Hong Kong's stock and future markets. The 30-point measures involves strong participation from HK Stock Exchange, HK Clearing, HK Futures Exchange and Securities and Futures Commission, Financial Service Bureau. HKSE - Co-ordinate with SFC to investigate cases that fail to comply T+2 rules. -Impose heavy penalties on repeated offenders of T-2 rule. -Re-introduce uptick rules to reduce the pressure of short selling on market prices. -Review the list of eligible companies in short selling. HK Clearing Co -Must strictly carry out T+2 rule. -Impose penalty charges, defaults fees and trade suspension on defaulting brokers. -Carry settlement obligations for defaulting brokers via buy-in on T-3. HKFE -Enforce rules of trade limit with regard to brokers capital - Disclose real time information of large open interests to SFC. -Impose high margin cost on 5,000 contracts. -Draft up time table for changing HSI Futures trading to automatic trading system - Co-ordinate with SFC to set up a early warning system for cross market. SFC -Responsible for enforcement and prosecution of illegal short selling rules. -Amend rules to increase short selling penalties. It suggest HK$100,000 and 2-year imprisonment. -Draft up legislative proposal for making unreported and false report of short selling as criminal offence. -Evaluate to alternatives how all investors open accounts with Central Clearing and Settlement System. Financial Service Bureau -Co-ordinate study on regulations of stock lending and borrowing to increase transparency. -Study how to increase government responsiveness to market crisis. It suggest to increase Chief Executive power to two exchanges and clearing houses. *
Comment:
Hong K: Govt will launch 30-point measures to strengthen the order and transparency of country's stock and future markets
Publication Name: HK Standard
Subject: Business, international
ISSN:
Year: 1998
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More punishment for speculators
Article Abstract:
The Government launched more measures to prevent speculation in Hong Kong's stock and futures markets. The following outlines main areas of the measures 1) It calls to increase the Chief Executive's power to instruct the two exchanges and clearing house in order to ensure speedy response to market crisis. 2) Any short selling activities which are not reported or reported falsely to the authorities will be regarded as criminal offence. All brokers will be required to submit details of short selling in the past weeks to the Stock Exchange and Securities and Futures Commission. 3) The Hong Kong Clearing Company will strictly enforce the T+2 rule which settlement must be completed in two days. 4) For futures market, the higher margin cost will impose on 5,000 futures contracts, compared with previous 10,000 contracts. 5) The Hong Kong Futures Exchange will set up a system to monitor market movement. 6) The Government will study how to improve its responsiveness to market crisis and co-ordination between financial authorities. *
Comment:
Hong K: Government launches more measures to prevent speculation in country's stock and futures markets
Publication Name: HK Standard
Subject: Business, international
ISSN:
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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