15 -
]
]
]
---ས།
Comment or recommendation
depend on the amount of risk they are creating subject to a minimum level."
37. Paragraph 8.67 "We recommend that large
traders should be identified by name."
38. Paragraph 8.68 "We recommend that the
HKFE and the CH should inter alia, (a) recompute the capital position of firms each day on the basis of the monthly capital return and the daily pays and collects; (b) compare the daily pays. and collects of each firm against the firm's capital and the recent pattern of pays and collects; (c) compare open positions and volumes with the recent trends, watching for a rapid build-up; (d) approach a firm to find out what is happening if any items are significant or unusual and (e) in fast markets estimate the impact of the various price changes on firms and also on customers with reported large positions."
39. Paragraph 8.72 "We therefore recommend
that Futures Brokers should be required to notify the regulatory authority (and their exchange, if any) whenever their capital falls below 150% of the regulatory minimum and if it falls by more than 20% from a previously reported level."
Action taken by the HKFE
specified in respect of GCMs and CMS have been fixed in the light of the fact that GCMs are permitted to have five times the number of open positions to CMs. The Exchange therefore believes that it has followed these particular recommendations.
Rule 506 of the new Rules contains provisions requiring Members to disclose the names of their Clients.
The level of supervision recommended by the Report is undoubtedly desirable.
At
this stage, the Exchange simply does not have the resources to be able to increase its surveillance to the level recommended by the Report. Nevertheless, the Exchange does not feel that this puts either the Exchange or the Clearing House in an untenable position. The Exchange believes that the new provisions introduced both requiring Members to report their large open positions and the new emphasis on position limits rather than on minimum capital requirements, combined with the more conservative attitude to risk overall in the Exchange and the Clearing House, will substantially improve the surveillance procedures. In due course once computer resources have been expanded and the manpower of the Exchange has increased, the Exchange will
review again the possibility of
increasing the daily
surveillance of its Members.
This recommendation is reflected in Rule 405.
........