88
WEDNESDAY, OCTOBER 26, 1994
EXEMPT DEALERS IN SECURITIES
*
IS
MICHAEL
A FOLLOWING
QUESTION BY DR THE HON HUANG CHEN-YA AND A
MR SERVICES, WRITTEN REPLY BY THE SECRETARY FOR FINANCIAL CARTLAND, IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY):
QUESTION: WILL THE GOVERNMENT INFORM THIS COUNCIL:
REPLY
EXEMPTED FUTURES COMMISSION TO TRADE IN DERIVATIVE RELATED TO SECURITIES;
(A) WHAT IS THE NUMBER OF BANKS IN HONG KONG
FROM THE REGULATION OF THE
WHICH ARE
SECURITIES SECURITIES
AND OR
(B)
WHAT IS THE TOTAL. TRANSACTION VOLUME OF SUCH TRADE THE LAST FINANCIAL YEAR;
IN
(C)
WHAT IS THE PROPORTION OF THE VOLUME OF TRADE IN LISTINGS, SECURITIES OR SECURITIES-RELATED DERIVATIVES CARRIED OUT BY THESE EXEMPTED BANKS AND OTHER REGULATED BODIES AS COMPARED WITH THAT CARRIED OUT BY BODIES UNDER THE REGULATION OF THE SECURITIES AND FUTURES COMMISSION; AND
NEW
NON-
(D)
WHAT MEASURES WILL THE GOVERNMENT TAKE TO ENSURE THE RISKS TO THESE BANKS AND THE FINANCIAL SYSTEM AS A WHOLE WILL BE PROPERLY CONTROLLED?
THAT
(A)
(B)
AS AT END OF SEPTEMBER 1994, THERE WERE 155 AUTHORISED INSTITUTIONS AND ONE REPRESENTATIVE OFFICE UNDER THE BANKING ORDINANCE WHICH QUALIFIED AS EXEMPT DEALERS UNDER THE SECURITIES ORDINANCE.
IS
NO BREAKDOWN OF
THE
THERE
REGARDING STATISTICS TRADING VOLUME OF SECURITIES
AND SECURITIES-RELATED DERIVATIVE PRODUCTS CONDUCTED BY EXEMPT DEALERS WHICH ARE AUTHORISED INSTITUTIONS UNDER THE BANKING ORDINANCE. HOWEVER, A SURVEY ON AUTHORISED EXPOSURE TO MARKET RISKS INSTITUTIONS'
CONDUCTED BY THE MONETARY AUTHORITY IN 1993 INDICATED THAT, IN GENERAL, AUTHORISED INSTITUTIONS WERE NOT HEAVILY INVOLVED IN DERIVATIVE BUSINESS
(C)
THE EXEMPTION FROM REGISTRATION WITH THE SECURITIES ARE AND FUTURES COMMISSION, MEANS THAT EXEMPT DEALERS NOT REQUIRED TO FILE REGULAR RETURNS WITH THE COMMISSION AS REGARDS THE VOLUME OF THEIR ACTIVITIES. THERE ARE THEREFORE NO READILY AVAILABLE STATISTICS INDICATING THE PROPORTION OF TRADE CARRIED OUT BY EXEMPT DEALERS COMPARED WITH THAT CARRIED OUT BY THE REGULATED SECTOR.
(D) IN LINE