WEDNESDAY, OCTOBER 17, 1990
11
REDUCTION IN LIFEBOAT LEVY AIMS AT REVIVING STOCK INDEX MARKET
TODAY THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, SAID
SENG INDEX (WEDNESDAY} THAT THE REDUCTION IN SPECIAL LEVY ON HANG
THE ACCELERATE THE REVIVAL OF
STOCK FUTURES CONTRACT WILL HOPEFULLY INDEX MARKET.
IN A STATEMENT
ΤΟ THE
LEGISLATIVE ALL THE WHICH
THE FINANCIAL SECRETARY COUNCIL ON THE EXCHANGES (SPECIAL LEVY) ORDINANCE SAID THAT PARTIES TO THE FACILITIES HAD AGREED TO THE REDUCTION IN LEVY, TOOK EFFECT AT THE BEGINNING OF THIS WEEK.
THE FUTURES GIVES
EXCHANGE AN AND REQUIRES TO THE OF
"THE AMENDED AGREEMENT ENTITLEMENT TO RECEIVE $25 OUT OF EACH LEVY OF $30 PAID, THE TRUSTEE OF THE SPECIAL LEVY FUND TO PAY THAT ENTITLEMENT FUTURES EXCHANGE FORTHWITH UPON THE TRUSTEE RECEIVING EACH PAYMENT LEVY FROM THE FUTURES EXCHANGE.
"ADOPTION OF THIS PROCEDURE HAS ENABLED THE REDUCTION EFFECTED QUICKLY AND WITHOUT AMENDING THE LEGISLATION," HE SAID.
TO BE
OF
IN
THE FINANCIAL SECRETARY SAID THE SO-CALLED "LIFEBOAT" LEVY $30 PER TRANSACTION, BUYING OR SELLING, IN RESPECT OF TRADING DONE THE STOCK INDEX MARKET OF THE HONG KONG FUTURES EXCHANGE WAS PROVIDED FOR IN THE EXCHANGES (SPECIAL LEVY) ORDINANCE ENACTED IN OCTOBER 1987.
"I
CREDIT FACILITIES "IT PROVIDES A SOURCE OF REPAYMENT FOR THE EXTENDED TO THE HONG KONG FUTURES GUARANTEE CORPORATION AT THAT TIME, SIR PIERS SAID.
STOCK ARGUED THAT THE MARKET
THE FINANCIAL SECRETARY POINTED OUT THAT TURNOVER IN THE INDEX MARKET HAD BEEN LOW AND THE FUTURES EXCHANGE HAD THIS WAS ATTRIBUTABLE TO HIGH TRADING COSTS, AND THAT IF WAS TO RECOVER IT WAS NECESSARY FOR THE SPECIAL LEVY TO BE REDUCED.
"IN
EVALUATING THE EFFECT OF A REDUCTION, WE HAVE RELATIVELY SMALL SUMS ARE BEING RECEIVED FROM THIS SOURCE.
NOTED THAT
"I SHOULD ADD THAT INTEREST AT PRIME LENDING RATE IS BEING PAID ON THE OUTSTANDING PRINCIPAL, AND IT SEEMS UNLIKELY THAT INTEREST WILL NOT BE ADEQUATELY COVERED FROM SOURCES OTHER THAN THE SPECIAL LEVY THE FUTURES CONTRACT," HE SAID.
ON
WAS TAKEN
THAT THE SIR PIERS SAID THE VIEW WHICH HE HAD
GOVERNMENT RELATIVELY SMALL REDUCTION IN THE RATE OF REPAYMENT OF THE
THE POTENTIAL INCREASE IN FACILITY WAS A PRICE WORTH PAYING FOR ACTIVITY IN THE STOCK INDEX MARKET.
"THE RULES OF THE FUTURES EXCHANGE HAVE BEEN AMENDED TO PROVIDE THAT MEMBERS OF THE EXCHANGE ONLY COLLECT, BY WAY OF THE SPECIAL LEVY,
THIS AMENDMENT HAS BEEN APPROVED BY $5 PER STOCK INDEX CONTRACT. SECURITIES AND FUTURES COMMISSION," THE FINANCIAL SECRETARY SAID.
THE
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