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TUESDAY, OCTOBER 13, 1992
STOCK MARKET IS SET FOR MORE DEVELOPMENTS
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WITH THE ADVENT OF THE CENTRAL CLEARING AND SETTLEMENT SYSTEM (CCASS), THE WAY HAS NOW BEEN PAVED FOR A NUMBER OF SIGNIFICANT DEVELOPMENTS IN THE STOCK MARKET, THE FINANCIAL SECRETARY, MR HAMISH MACLEOD, SAID TODAY (TUESDAY).
THESE INCLUDED THE INTRODUCTION OF AN AUTOMATIC ORDER MATCHING AND EXECUTION SYSTEM, PROPOSALS REGARDING SHORT SELLING, AND THE DEVELOPMENT OF NEW PRODUCTS, SUCH AS TRADED OPTIONS, MR MACLEOD SAID AT A RECEPTION TO MARK THE INAUGURATION OF THE CCASS.
THE CCASS WAS FIRST INTRODUCED TO TRADE-FOR-TRADE SETTLEMENT BASIS IN JUNE THIS TO FAMILIARISE THEMSELVES WITH ITS OPERATION.
OPERATE INITIALLY ON YEAR FOR PARTICIPANTS
IT CAME INTO FULL OPERATION LAST WEDNESDAY WHEN IT MOVED ON ΤΟ THE CONTINUOUS NETTING SYSTEM.
"I UNDERSTAND THAT THE BRIEF EXPERIENCE SO FAR HAS SHOWN THAT CCASS HAS GREATLY ENHANCED SETTLEMENT EFFICIENCY. MORE IMPORTANTLY, IT WILL SUBSTANTIALLY REDUCE COUNTERPARTY EXPOSURE OF BROKERS AND WILL PROVIDE A BETTER RISK MANAGEMENT FRAMEWORK TO SAFEGUARD THE
INTEGRITY OF THE MARKET, MR MACLEOD SAID.
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HE SAID THE LAUNCHING OF THE CCASS MARKED ANOTHER NOTABLE MILESTONE IN A SERIES OF IMPROVEMENTS ΤΟ HONG KONG'S STOCK AND FUTURES MARKETS.
OTHER ACHIEVEMENTS THAT AIMED AT ENSURING MARKET INTEGRITY AND PROTECTING INVESTORS INCLUDED THE FORMATION OF THE SECURITIES AND FUTURES COMMISSION (SFC); THE RE-CONSTITUTION OF THE STOCK EXCHANGE AND THE FUTURES EXCHANGE, WITH MORE REPRESENTATIVE AND BROADLY BASED GOVERNING BODIES, INCLUDING BOTH LOCAL AND INTERNATIONAL INTERESTS; AND THE INTRODUCTION OF SANCTIONS AGAINST INSIDER DEALING AND A REQUIREMENT FOR PUBLIC DISCLOSURE OF THE INTERESTS OF SIGNIFICANT SHAREHOLDERS.
HK TO RECOGNISE WORLD STANDARDS DAY
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HONG KONG WILL BE JOINING MANY COUNTRIES AROUND THE WORLD TOMORROW (WEDNESDAY) IN RECOGNISING THE 23RD WORLD STANDARDS DAY WHICH MARKS ANOTHER MILESTONE IN THE DEVELOPMENT OF INTERNATIONAL STANDARDISATION.
THE WORLD STANDARDS DAY IS CELEBRATED EACH YEAR ON OCTOBER 14 IN ALL MEMBER COUNTRIES OF THE INTERNATIONAL ORGANISATION FOR STANDARDISATION (ISO) AND THE INTERNATIONAL ELECTROTECHNICAL COMMISSION (IEC).
/THE DEPUTY