3
-
Wednesday, December 12, 1973
"With roughly 1,000 members these deposits would amount to $25 million
in cash and $25 million in bank guarantees," he said. "Whether these
deposits are provided directly from the funds which the exchange itself
holds as a corporate body or by calls on their members would be entirely
a matter for the oxchange."
He added that where an exchange had, or was prepared, to establish
a scheme whereby the transactions of each broker were guaranteed to a
substantial sun, the Commissioner would be empowered to dispense with the
bank guarantee of $25,000.
Mr. Haddon Cave felt that these proposals were practical and
simple and should not prove to be burdensome to the stock exchanges or
their mombers. It was clear, however, that this was a field from which
we could only learn from experience.
He undertook, therefore, that whatever arrangements were finally
written into the bill would be subject to review in two years time.
The Financial Secretary described the part dealing with the
establishment of compensation funds as "perhaps the most controversial"
but he was adamant on two points; namely that a compensation fund of
significant size must be set up at once mostly in liquid form, and that
the investment of this fund must be vested in an independent body on which
the proposed Federation of Stock Exchanges should be represented.
He went on to say that he would probably also nove an amendment
whereby a committee of the Federation as opposed to the four committees
would have responsibility for assessing and
of the stock exchanges
approving clains against the fund.
/Claims