XN000022-1989-05-18 — Page 7

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THURSDAY, MAY 18, 1989

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"MOST PEOPLE NOWADAYS TEND TO THINK OF IT FUTURES EXCHANGE, HE SAID, "IN FACT WE ONLY GOT FINANCIAL FUTURES PRODUCT BEING TRADED AT THE MOMENT.

AS A FINANCIAL ESSENTIALLY ONE

"SO WE NEED TO SEE A GREATER DEPTH OF PRODUCTS IN FUTURES EXCHANGE, HE POINTED OUT,

HONG KONG'S

ASKED ABOUT THE INTEREST RATE FUTURES CONTRACT, MR JACOBS SAID THE FORMAL PROPOSAL HAD NOT YET BEEN RECEIVED.

"AS I UNDERSTAND. IT IS WITH *THE SECURITIES AND FUTURES COMMISSION AT THE MOMENT. IT IS BEING PROCESSED THROUGH THERE."

TO THE

CAME HE SAID WHEN IT ULTIMATELY

THE ADMINISTRATION, GOVERNMENT WOULD HAVE TO LOOK AT IT AND PROBABLY TAKE IT THROUGH THE EXECUTIVE COUNCIL.

ASKED WHEN THIS NEW CONTRACT WOULD BE DISCUSSED, HE SAID NO EXACT DATE COULD BE GIVEN BUT HE THOUGHT IT WOULD BE IN A MATTER OF FEW MONTHS.

A

IN REPLY TO ANOTHER QUESTION ABOUT INDEX FUTURES AND INSIDER

ON DEALING, MR JACOBS SAID HE WOULD MAKE A STATEMENT

THE PARTICULAR QUESTION IN THE LEGISLATIVE COUNCIL BEFORE THE END OF THIS SESSION.

HE SAID THE THINKING AT THE MOMENT WAS THAT INDEX FUTURES CONTRACT SHOULD NOT BE INCLUDED IN THE DEFINITION OF THE SECURITIES TO WHICH THE INSIDER DEALING PROVISIONS RELATE.

"IN OTHER WORDS, IT SHOULDN'T BE SUBJECT ΤΟ THE INSIDER CLOSED ON DEALING PROVISIONS," HE SAID, ADDING THAT HIS MIND WAS NOT IT AS YET.

A

RUN AS

THE

ASKED WHETHER HE THOUGHT THE FUTURES EXCHANGE COULD BE

BODY. SELF-REGULATORY

HE SAID ONE OF

IN THE PROVISIONS SECURITIES AND FUTURES COMMISSION ORDINANCE WAS THAT THE COMMISSION SHOULD DEVELOP AND PROMOTE THE CONCEPT OF SELF-REGULATION.

"SO I BELIEVE THAT THE FUTURES EXCHANGE SHOULD MOVE TO GREATER WORK LEVELS OF SELF-REGULATION OVER THE FUTURE. BUT WE REALLY HAVE TO TOGETHER TO SEE THAT THE REGULATION THAT IS IMPOSED PROPER, HE SAID.

IS

ADEQUATE AND

RATE

SAID NOT

ASKED WHETHER THE RECENT RISE OF THE U.S. DOLLAR EXCHANGE HAD ANY IMPACT ON EXPORT OR THE ECONOMY OF HONG KONG, MR JACOBS

BUT HE DID THERE HAD BEEN A SLIGHT SLOWING DOWN IN THE ECONOMY SEE IT DIRECTLY RELATED TO THE RECENT INCREASE IN THE EXCHANGE RATE.

"I DON'T THINK IT HAS REACHED THAT POINT WHERE IT WOULD HAVE OUR EXPORTS ANY DRAMATIC SORT OF EFFECT ON THE LEVEL OF OUR EXPORTS.

GOING HAVE BEEN

DOWN SLIGHTLY ANYWAY, THERE HAS BEEN A SLIGHT COOLING," HE SAID.

/ASKED ABOUT