XN000022-1989-11-27 — Page 5

MONDAY, NOVEMBER 27, 1989

APPLICATIONS INVITED FOR APPOINTMENT AS RECOGNISED DEALER

* *

FOR

ANOTHER STEP HAS BEEN TAKEN IN THE DEVELOPMENT OF THE

MONETARY AFFAIRS, THE SECRETARY FUND BILLS PROGRAMME, NENDICK, SAID TODAY (MONDAY).

MR

EXCHANGE DAVID

RECEIVE

APPLICATIONS

'THE MONETARY AFFAIRS BRANCH IS READY TO FOR APPOINTMENT AS RECOGNISED

HE SAID. DEALER,

"WE

PL

WRITTEN

EXPECT

TO ALL INVITATIONS

THE FIRST APPLICATIONS TO

BANKS

AND

BE

ARE 133UING DEPOSIT-TAKING COMPANIES AND SUBMITTED IN THE NEXT FEW DAYS."

LAID DOWN BY THE FINANCIAL MARKETS ASSOCIATION

IN ACCORDANCE WITH THE CRITERIA SECRETARY IN HIS SPEECH TO THE HONG KONG CAPITAL ON AUGUST 24, LICENSED BANKS

AND LICENSED DEPOSIT-TAKING

WILL NORMALLY QUALIFY FOR APPOINTMENT.

COMPANIES

BE ACCEPTED CAPITAL INSTITUTIONS

REGISTERED DEPOSIT-TAKING COMPANIES WILL NORMALLY FOR APPOINTMENT ONLY IF THEY ARE BANK-OWNED OR HAVE A PAID-UP

OTHER APPLICATIONS FROM OF NOT LESS THAN $100 MILLION. WILL BE CONSIDERED ON THEIR MERITS.

HAVING "THEY WILL HAVE TO SATISFY US THAT THEY SHOULD QUALIFY,

ACTIVITY IN THE HONG KONG REGARD TO THEIR CAPITAL ADEQUACY, THEIR

MR NENDICK SAID. DOLLAR MONEY MARKET AND THEIR CREDIT STANDING,

THEY WILL HAVE TO BE BROUGHT "IF ACCEPTED, SUPERVISION AND REGULATION," HE ADDED.

UNDER PROPER

RE ALLOWED TO SUBMIT BIDS IN RECOGNISED DEALERS WILL WEEKLY TENDERS FOR EXCHANGE FUND BILLS WHICH ARE EXPECTED TO START A FEW MONTHS' TIME.

RECOGNISED

DEALERS WILL BE

THE

IN

то INVITED

BECOME SOME OF THE

AND OFFER MARKET MAKERS. MARKET MAKERS WILL BE OBLIGED TO QUOTE BID PRICES FOR THE BILLS DURING NORMAL MONEY MARKET HOURS.

AND SELL BILLS IN THE THE MONETARY AFFAIRS BRANCH WILL BUY

ACT AS A LAST SECONDARY MARKET ONLY THROUGH MARKET MAKERS AND WILL RESORT SUPPLIER AND LENDER OF HILLS TO MARKET MAKERS.

ADDITIONAL

THEY WILL GENERAL

THE EXCHANGE FUND BILLS ARE DESIGNED TO SERVE AS AN

FOR

MARKET INSTRUMENT

CONDUCTING MONEY

OPERATIONS. THEREFORE BE FOR THE ACCOUNT OF THE EXCHANGE FUND AND NOT THE REVENUE.

OF SHORT TERM EXCHANGE THE INTENTION TO DEVELOP A PROGRAMME

FINANCIAL. SECRETARY IN HIS BUDGET FUND BILLS WAS ANNOUNCED BY THE SPEECH ON MARCH 1 THIS YEAR.

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