XN000022-1987-06-17 — Page 19

17

WEDNESDAY, JUNE 17, 1987

FUTURES TRADERS BAN ON COMMISSION TO BE LIFTED

THE

A BILL SEEKING TO ENABLE THE APPOINTMENT OF COMMODITY FUTURES TRADERS TO THE COMMODITIES TRADING COMMISSION WAS INTRODUCED INTO LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MOVING THE SECOND READING OF THE COMMODITIES TRADING (AMENDMENT) BILL 1987, THE ACTING FINANCIAL SECRETARY, THE HON DAVID NENDICK, SAID THE ADMINISTRATION CONSIDERED THE STRINGENT RESTRICTION ON MEMBERS OF THE COMMISSION AND COMMITTEES AND ON APPOINTED AUDITORS UNDER SECTION 12(1) OF THE ORDINANCE UNNECESSARY.

MR NENDICK ALSO SAID THE MAIN FUNCTIONS OF THE COMMODITIES IN TRADING COMMISSION WERE TO ADVISE ON MATTERS RELATING TO TRADING COMMODITY FUTURES CONTRACTS, то ENFORCE THE PROVISIONS OF THE ORDINANCE, AND TO SUPERVISE THE ACTIVITIES OF THE HONG KONG FUTURES EXCHANGE LTD.

"GIVEN THE SPECIALISED NATURE AND INCREASING COMPLEXITY OF COMMODITY FUTURES, THE APPOINTMENT ΤΟ THE COMMISSION OF PERSONS ACTIVELY INVOLVED IN FUTURES TRADING WOULD BE OF BENEFIT TO THE COMMISSION AND TO THE PROPER DEVELOPMENT OF THE FUTURES INDUSTRY," SAID.

IN

HR

WHO

THE

CARRYING OUT INDIRECTLY EFFECT ANY PARTICIPATE IN ANY IN COMMODITY FUTURES

"HOWEVER, UNDER SECTION 12(1) OF THE ORDINANCE, NO PERSON

WHO HAS BEEN APPOINTED UNDER OR

IS EMPLOYED PROVISIONS OF THE ORDINANCE SHALL DIRECTLY OR TRADING IN COMMODITY FUTURES CONTRACTS OR OPERATION OR TRANSACTION RELATING TO TRADING CONTRACTS, MR NENDICK ADDED.

"

"THIS HAS CREATED DIFFICULTIES IN FINDING SUITABLE PERSONS TO SERVE ON THE COMMISSION," HE SAID.

WHILE NOTING THAT THERE WAS NO SUCH RESTRICTION RELATING TO THE SECURITIES COMMISSION IN THE SECURITIES ORDINANCE, HE SAID THE PROPOSED AMENDMENT WOULD ENABLE THE APPOINTMENT OF PROFESSIONAL FUTURES TRADERS TO THE COMMISSION.

"HOWEVER, PUBLIC OFFICERS

EMPLOYED IN CARRYING OUT

THE PROVISIONS OF THE ORDINANCE WILL CONTINUE TO BE PROHIBITED FROM TRADING IN COMMODITY FUTURES CONTRACTS. HE ADDED.

BASED "GIVEN THE NATURE OF THE COMMODITIES MARKET AND

THE COMMISSION'S EXPERIENCE, MEMBERS OF THE COMMISSION ARE UNLIKELY TO BE PRIVY TO PRICE-SENSITIVE INFORMATION BY VIRTUE OF THEIR OFFICIAL POSITION," HE SAID.

ON

/MR NENDICK