XN000022-1988-06-02 — Page 4

THURSDAY, JUNE 2, 1988

3

ALL THE INTEGRITY

INDEPENDENT MEMBERS SHOULD BE INCLUDED ON THE BOARDS OF EXCHANGES AND CLEARING HOUSES TO STRENGTHEN OF THE MARKET BODIES; AND

INTEGRITY THE

SHOULD BE PUT OF THE

INDEPENDENT, WELL-PAID, AND QUALIFIED STAFF IN THE EXCHANGES TO ENSURE SELF-REGULATORY SYSTEM.

OF THE

SPECIFIC

RECOMMENDATIONS

OF THE STOCK AND FUTURES

THE RISK MARKETS,

MANAGEMENT FUTURES EXCHANGE

THE REPORT PUT FORWARD SOME 160 COVERING THE CONSTITUTION AND MANAGEMENT

THE OPERATIONS EXCHANGES, STRUCTURE, TRADING CONTROLS AND SURVEILLANCE OF THE AND THE RECONSTITUTION AND AMALGAMATION OF SECURITIES AND COMMODITIES TRADING COMMISSIONS AND THE OFFICE OF THE COMMISSIONER FOR SECURITIES.

IN RESPECT OF OF NEW ISSUES, AND

SPECIFIC RECOMMENDATIONS WERE ALSO PUT FORWARD THE REGULATION OF INTERMEDIARIES, THE MARKETING THE CONTINUING OBLIGATIONS OF LISTED COMPANIES.

WIDE CONSULTATIONS BOTH PER COPY AT THE GPO BUILDING, CONNAUGHT PLACE,

THE REPORT, WHICH WAS COMPILED AFTER LOCALLY AND INTERNATIONALLY, IS NOW ON SALE AT $55 GOVERNMENT PUBLICATIONS

CENTRAL.

CENTRE,

COMMITTEE

FOLLOWING IS THE

CHAIRMAN, AT PUBLICATION OF THE REPORT:

TEXT OF TODAY'S

A STATEMENT BY

MR

PRESS

CONFERENCE

THE DAVISON, MARKING THE

WE

ITS

COMMITTEE FORMALLY DELIVERED "LAST THURSDAY, MAY 26, MY

HONG KONG SECURITIES REPORT ON "THE OPERATION AND REGULATION OF THE

APPOINTED WERE

BY

ON INDUSTRY" TO THE GOVERNOR.

THE GOVERNOR THE OCTOBER CRASH. AT THE NOVEMBER 16, 1987 JUST FOUR WEEKS AFTER

MONTHS. WE FAILED TIME WE AGREED TO DO OUR BEST TO REPORT IN SIX BUT WE ARE ONLY 10 DAYS LATE.

OUR TERMS OF REFERENCE - SET OUT AT THE BEGINNING OF CHAPTER II THE CONSTITUTION, POWERS, OF THE REPORT - CALL ON US TO REVIEW

KONG STOCK AND FUTURES

THE

OF THE HONG AND OPERATIONS MANAGEMENT EXCHANGES, THE SECURITIES AND COMMODITIES TRADING COMMISSIONS AND

PREPARE WE WERE TO FOR OFFICE OF THE COMMISSIONER BLUEPRINT FOR THE FUTURE RATHER THAN TO ALLOCATE BLAME FOR THE PAST.

SECURITIES.

A

THE CRASH, EXCHANGE. THESE SUBMISSIONS DISCUSSIONS

THE BASIS FOR OUR REPORT WAS FIRSTLY THE EVENTS OF THE CLOSURE AND THE SUBSEQUENT RESCUE OF THE FUTURES EVENTS ARE SUMMARISED IN APPENDIX 1. SECOND, 115 WRITTEN FROM INTERESTED PARTIES AND A LONG SERIES OF MEETINGS AND

COMMUNITY. THE PARTIES ARE WITH MEMBERS OF THE HONG KONG FINANCIAL

THIRDLY, CONVERSATIONS AND IDENTIFIED IN APPENDICES CORRESPONDENCE WITH A WHOLE HOST OF OVERSEAS EXCHANGES AND REGULATORS, ESPECIALLY THOSE IN NEW YORK, CHICAGO AND LONDON. OF THOUGHT, RESEARCH AND GREATLY HELPED BY OUR STAFF WHOSE

AND 7. 6

DEBATE

AND FINALLY A LOT IN WHICH THE COMMITTEE HAS BEEN EFFORTS WE ACKNOWLEDGE AT PARA.

2.27.

/CHAPTER I