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FRIDAY, NOVEMBER 27, 1981
+THE EVENTUAL COMMENCEMENT OF OPERATION OF A UNIFIED EXCHANGE WILL ASSIST THE STOCK-BROKING COMMUNITY TO ESTABLISH A MARKET WHICH IS LARGELY SELF-REGULATING, HE ADDED.
MR BREMRIDGE ALSO SAID +SOME ACTIONS THIS YEAR BY STOCK EXCHANGES, BROKERS AND OTHER SECURITIES DEALERS HAVE ARGUABLY NOT CONTRIBUTED TO THE ESTABLISHMENT OF THE SECURITIES INDUSTRY IN HOW LONG ON AN ESSENTIALLY SELF-REGULATING BASIS.+
ALTHOUGH +TOO MUCH MUST NOT BE MADE OUT OF ISOLATED CASES, SUCH MATTERS AS AN APPARENT LOWERING IN THE QUALITY OF SOME NEW ISSUES DURING THIS YEAR, AND A HINT OF UNWILLINGNESS ON THE PART OF THE EXCHANGES TO PROVIDE AN APPROPRIATE QUALITY CONTROL OVER SUCH ISSUES OR TO ASSUME THE RESPONSIBILITY OF
EXAMINING IN DETAIL THE PROSPECTUSES AND OTHER DOCUMENTS CONNECTED WITH THEM, HAVE CREATED A DEGREE OF CONCERN, HE SAID.
HE SAID HE SHARED THE SECURITIES COMMISSION'S DESIRE TO SEE THE STOCK EXCHANGES INTRODUCE THE IR OWN PROPER RULES IN THESE AND OTHER AREAS AND HAVE THEIR OWN MEANS OF ENFORCING THEM IN PREFERENCE TO GOVERNMENT REGULATION.
BUT THE EXCHANGES AND BROKERS, IN ORDERING THEIR AFFAIRS, SHOULD TAKE DUE CONSIDERATION FOR THE REPUTATION BOTH OF HONG KONG AS A MAJOR WORLD FINANCIAL CENTRE AND IN PARTICULAR OF THE SECURITIES INDUSTRY HERE.+
THIS CAN ONLY BE ACHIEVED IF EXCHANGES ACCEPT THAT THERE ARE OBLIGATIONS TO INVESTORS AND TO COMPANIES SEEKING FUNDS THROUGH THE STOCK MARKET AS WELL AS TO THOSE PROFESSIONALLY INVOLVED IN THE MARKET AS BROKERS OR SECURITIES DEALERS.
+SUCH CONTENTIOUS MATTERS AS THE CLOSURE OF THE STOCK MARKET TO NEW ISSUES, AND THE FAILURE TO PROCEED FOR YEARS WITH PAYMENTS IN RESPECT OF DEFAULTING BROKERS FROM THE STOCK EXCHANGE COMPENSATION FUND MUST SURELY BE REVIEWED, HE TOLD THEM.
MR BREMRIDGE ALSO SAID THAT ALTHOUGH THE SECURITIES COMMISSION WILL ALWAYS CONSIDER THE VIEWS OF STOCK BROKERS SYMPATHETICALLY, IT MAY NOT ALWAYS AGREE WITH THEM BECAUSE OF ITS RESPONSIBILITY TO PROTECT ALL OF THE PUBLIC INVOLVED IN INVESTMENT AND NOT JUST THE INTERESTS OF BROKERS.
MEANWHILE, THE EXCITING FORMATION OF THE NEW EXCHANGE WITH ITS LARGE MEMBERSHIP ON A SINGLE FLOOR WILL BRING ABOUT THE DEVELOPMENT OF NEW DEALING METHODS, AND PERHAPS THE FORMATION OF A CENTRAL CLEARING SYSTEM. THIS SHOULD BE EXAMINED NOW IN RESPECT OF THE PRESENT EXCHANGES. ALL THIS IS FAR BETTER DONE BY SELF-REGULATION THAN BY GOVERNMENT INTERVENTION.+
HE CONGRATULATED THE ASSOCIATION ON ITS WORK AND WISHED IT WELL FOR THE FUTURE.
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