Financial and Monetary Affairs | 91
Statistics on derivatives market turnover (million contracts)
2009
2010
2011
All options and futures contracts
99
116
140
Of which: HSI Futures
21
21
23
H-shares Index Futures
12
12
15
HSI Options
5
9
11
H-shares Index Options
2
3
4
Stock Options
47
61
74
At the end of 2011, there were 21 automated trading services providers, comprising mainly foreign exchanges and regulated entities, authorised by the SFC to provide automated trading services in Hong Kong. Automated trading services are services provided by means of electronic facilities, not being facilities provided by a recognised exchange company or a recognised clearing house, to transact or settle transactions in securities or futures contracts.
Securities and Futures Commission
The SFC was established in May 1989 following the enactment of the Securities and Futures Commission Ordinance, which was replaced by the SFO that came into effect on April 1, 2003. Established as an autonomous statutory body, the SFC is responsible for regulating the securities and futures markets in Hong Kong.
The SFC is funded by the market. No government funding has been sought since 1993. Its total expenditure in 2011-12 is estimated to be $1,012 million.
The exercise of powers by the SFC is subject to a range of checks and balances. For instance, a wide range of SFC decisions is subject to appeal at the independent Securities and Futures Appeals Tribunal. The Process Review Panel for the SFC was established in 2000 to review and advise the SFC on the adequacy of the internal procedures and operational guidelines governing the actions and operational decisions it takes in the performance of its regulatory functions.
The SFC's work is wide in scope. It starts with setting standards for industry participants through a licensing system and extends to the supervision and monitoring of intermediaries, enforcing of securities laws and rules, regulating offering documents and promotional materials of retail investment products. Together with SEHK, the SFC ensures the quality of disclosure of listing applicants and securities issuers. It has oversight of takeovers, mergers and privatisations of listed companies, the markets, the exchanges, the clearing houses and alternative trading platforms. In addition, the SFC works with counterparts in Hong Kong, in the mainland of China and overseas on issues that require regulatory collaboration and assumes the statutory role of educating investors on investment risks and the importance of making informed investment decisions.