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Wednesday, June 20, 1973
BAN ON ESTABLISHING COMMODITY EXCHANGES
The Government has decided to ban for the time being, and with
immediate effect, the establishment in Hong Kong of commodity exchanges
dealing with specified commodities, initially 20 in all.
At present there are no specific legal controls relating to the
establishment and operation of such exchanges.
The Financial Secretary, the Hon. C.P. Haddon-Cave, in a statement
to Legislative Council today said that the necessary legislation to give
effect to this ban is now being drafted and will be presented to the council
for consideration at an early date.
However, he stressed that, if passed, the legislation 'would take
effect from today (June 20).
"In other words, no person or persons will be permitted to establish
a market to deal or trade in the commodities specified whether in spot or
futures contracts as from today. The only exceptions will be those markets
or exchanges already in business at the present time, such as the daily
rice auctions, the Gold and Silver Exchange and those organisations which
have an established business on an agency basis in commodity futures traded
on overseas exchanges," Mr. Haddon-Cave said.
He pointed out that it was not the government's intention to frustrate
the development of a properly regulated commodity exchange, or possibly more
than one exchange, at a later stage.
The intention
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