XN000022-1985-06-28 — Page 24

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FRIDAY, JUNE 28, 1985

ANY PERSON AFFECTED BY THE AMENDMENTS SHOULD SUBMIT HIS OBJECTION IN WRITING TO THE SECRETARY OF TOWN PLANNING BOARD, C/O LANDS DEPARTMENT, FOURTH FLOOR, MURRAY BUILDING, GARDEN ROAD, HONG KONG BEFORE JULY 18.

COPIES OF THE DRAFT PLAN ARE AVAILABLE AT THE SURVEY DIVISION, LANDS DEPARTMENT, FIFTH FLOOR, MURRAY BUILDING, GARDEN ROAD, HONG KONG, OR THE KOWLOON MAP SALES OFFICE AT 382 NATHAN ROAD AT $10 FOR UNCOLOURED COPY AND $60 FOR COLOURED ONE.

COMMODITIES TRADING (AMENDMENT) BILL

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THE EXECUTIVE COUNCIL HAS APPROVED THE INTRODUCTION OF A COMMODITIES TRADING (AMENDMENT) BILL 1985, WHICH INCORPORATES THE PROPOSED AMENDMENTS PREVIOUSLY CONTAINED IN THE COMMODITIES TRADING (AMENDMENT) BILL 1984 GAZETTED IN AUGUST 1984.

A SPOKESMAN FOR THE SECURITIES AND COMMODITIES TRADING COMMISSION EXPLAINED THAT THE 1984 BILL PROPOSED AMENDMENTS TO ALLOW THE HONG KONG FUTURES EXCHANGE LTD TO REORGANISE ITS SHAREHOLDING AND MANAGEMENT, AND TO ALLOW TRADING IN STOCK INDICES AND FINANCIAL FUTURES. THESE AMENDMENTS TOGETHER WITH SOME FURTHER AMENDMENTS OF A TECHNICAL NATURE ARE IN THE PRESENT BILL.

THE MAJOR NEW PROPOSALS CONTAINED IN THE PRESENT BILL ARE RELATED TO THE COMPENSATION FUND.

THE SPOKESMAN EXPLAINED THAT THE PRESENT COMPENSATION FUND WAS ESTABLISHED IN 1977, TO PROVIDE SOME COMPENSATION TO CLIENTS OF MEMBERS OF THE FORMER HK COMMODITY EXCHANGE LTD WHO SUFFER PECUNIARY LOSS THROUGH THE DEFAULT OF A SHAREHOLDER,

HOWEVER DEFICIENCIES IN THE EXISTING COMPENSATION FUND PROVISIONS HAVE BEEN IDENTIFIED, MOST SERIOUSLY IN RELATION TO UNCERTAINTIES AS TO THE MEANING OF SOME KEY PROVISIONS. IT ALSO APPEARS LIKELY THAT THE FUND MAY BE EXHAUSTED IN THE NEAR FUTURE.

THE COMMODITIES TRADING COMMISSION HAS THEREFORE UNDERTAKEN A COMPREHENSIVE REVIEW OF THE COMPENSATION FUND PROVISIONS AND RECOMMENDED A COMPLETE REVISION OF THE METHOD OF FUNDING AND OF THE METHOD FOR PROCESSING CLAIMS AGAINST THE FUND.

THE SPOKESMAN POINTED OUT THAT THE PROPOSALS NOW BEING MADE WERE AIMED AT ENSURING THAT THE NEW FUND WOULD BE LARGELY SELF-SUSTAINING.

+THIS IS TO BE ACHIEVED THROUGH A NEW FUND BEING CREATED FROM DEPOSITS OF $50 000 IN RESPECT OF EACH SHAREHOLDER OF THE EXCHANGE COMPANY.

+TO ASSIST