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Mr Tsang said the Government's aim is to ensure the orderly operation of the securities and futures sector and to encourage the development of new products and services.
"We seek to strike a balance between the degree of prudential regulation necessary to ensure the continued reliability and high reputation of our goods and services and the degree of freedom necessary to ensure that our market remain vigorously innovative and competitive," he said.
Mr Tsang said the Hong Kong Futures Exchange has been the frontline regulator of the options and futures market.
"I am delighted to read the mission statement of the Hong Kong Futures Exchange that the Exchange seeks to provide investors with a transparent, fair. efficient and diversified futures and options market and to consolidate the role as an international risk management centre serving China and the world," he said.
He also commended the Futures Exchange for its efforts to diversify the Exchange's markets and products to help ensure Hong Kong's overall competitiveness in the financial world.
A record number of new derivative products have been introduced into the securities and futures markets in 1995, he added.
Mr Tsang said the Futures Exchange maintains a risk management system which provided the highest level of safety and the early detection of unsound financial practices.
"The system now provides a unique blend of risk management and financial surveillance techniques, and has enabled the Exchange to be responsive to the demands of a sophisticated financial marketplace.
"The system is constantly being reviewed and modified to reflect the most advanced risk management techniques," he said.
End/Thursday, November 30, 1995