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Linkage between HKFE and Philadelphia Stock Exchange
Following is a question by the Hon Steven Poon Kwok-lim and a written reply by the acting Secretary for Financial Services, Mrs Lessie Wei, in the Legislative Council today (Wednesday):
Question:
In view of the decision of the Hong Kong Futures Exchange (HKFE) to form a linkage with the Philadelphia Stock Exchange (PSE) in the United States which will enable the same futures product to be traded on both exchanges, will the Government inform this Council whether -
(a)
(b)
(c)
(d)
it will ask the HKFE to clarify if the HKFE's establishment of a linkage with the PSE, which will facilitate the PSE in trading futures contracts on Hong Kong stocks, goes against HKFE's original intention of launching stock futures contracts and the Government's undertaking given to this Council and the securities industry, bearing in mind that when the plan for introducing futures contracts on the Hongkong and Shanghai Banking Corporation Holdings and Hongkong Telecom stocks was explained to Members of this Council, the Government highlighted in particular the need for the HKFE to introduce the product as soon as possible so as to forestall a launch by the Singapore International Monetary Exchange of futures contracts on these two stocks;
the HKFE has received encouragement from the Securities and Futures Commission (SFE) and the Government in making this decision;
such a decision requires the prior approval of the SFC; if so, whether the SFC in granting its approval has assessed the overall implications of the HKFE's decision on the territory's securities industry and whether the SFC's findings will be published; if not, whether consideration will be given to amending the relevant legislation so that the launching of similar plans requires the prior approval of the SFC; and
the Government and the SFC have consulted the Stock Exchange of Hong Kong (SEHK) on HKFE's decision; if so, what the SEHK's views are and whether the SEHK has raised any issues warranting particular concern?