strengthening its systems and regulatory
arrangements.
We reject fundamental changes in favour of building on existing systems, as the success of Hong Kong's financial services market depends largely on the healthy working of the free enterprise system which has demonstrated a dynamic
capacity for promoting innovation and growth. We have
therefore decided that practitioner regulation should
continue but that safeguards will have to be introduced at
every level.
1.9.
To this end, we have recommended, inter alia :
(a) a fundamental revision of the internal
constitution of both the Exchanges; in
particular, in the case of the Stock
Exchange, there should be proper
representation on the governing body for individual and corporate members, combined
with an independent element to ensure that
the Exchange is properly governed and
works in the interests of all members and
users;
(b) the
development
of
a
professional, independent
the two Exchanges, with governing bodies setting executives implementing it;
staff of
executives in
the Exchange
policy and the
(c) an extension of the Stock Exchange
settlement period to three days which
should be strictly enforced and the early
development of a central clearing system;
(d) the continuation of the Hong Kong Futures
Exchange and its stock index contract but
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