XN000022-1991-11-19 — Page 5

4

TUESDAY, NOVEMBER 19, 1991

HOWEVER, HE HOPED THAT PEOPLE WOULD ALSO SEE THE REALITY.

"THE REALITY IS A HONG KONG WHICH IS ACCUSTOMED ΤΟ FACING PROBLEMS AND OVERCOMING THEM A HONG KONG WHICH FACES THE FUTURE WITH TREPIDATION BUT DETERMINATION, HE SAID.

||

NOT

HONG KONG TO SET UP MONEY MARKET PRACTICES COMMITTEE

* * *

IT IS PROBABLY TIME THAT HONG KONG FOLLOWS THE EXAMPLE OF OTHER MAJOR FINANCIAL CENTRES SUCH AS LONDON, NEW YORK AND TOKYO AND SET

WITH

SMALL A

A

DEGREE OF PRACTICES COMMITTEE MARKET PARTICIPATION,

DIRECTOR OF THE OFFICE OF THE EXCHANGE THE JOSEPH YAM SAID TODAY (TUESDAY).

THE

UP

OFFICIAL FUND,

MR

FOREX

HONG KONG

AT A LUNCHEON MEETING OF SPEAKING ASSOCIATION, MR YAM SAID THE COMMITTEE, THE FULL NAME OF WHICH WILL BE

FOREIGN EXCHANGE AND MONEY MARKET PRACTICES COMMITTEE, WILL

THE BE

AN ADVISORY AUTHORITY.

"BUT

BODY

WITHOUT ANY

EXECUTIVE

POWERS OR

ONLY

STATUTORY

OF

I HOPE IT WILL BE POSSIBLE TO ENSURE COMPLIANCE GUIDELINES THROUGH THE ASSOCIATIONS REPRESENTED ON IT," MR YAM SAID.

ITS

THE PROPOSED TERMS OF REFERENCE OF THE COMMITTEE IS TO AND OFFER ADVICE TO THE ORGANISATIONS REPRESENTED ON IT

OF THE ORDERLY DEVELOPMENT AND HEALTH RELATION TO FOREIGN EXCHANGE AND MONEY MARKET.

REVIEW ON MATTERS THE HONG

KONG

IN,

THIS LATTER EXPRESSION SHALL BE TAKEN TO INCLUDE BUSINESS

SPOT AND AND THE ACTIVITIES OF THOSE OFFERING SERVICES IN DEPOSITS, FORWARD FOREIGN EXCHANGES, OPTIONS, SWAPS, FORWARD RATE AGREEMENTS AND KINDRED PRODUCTS.

IT IS PROPOSED THAT THE COMMITTEE WILL RECOMMEND GUIDELINES AND OF COMMON PRACTICES FOR THE MARKETS, INCLUDING MATTERS SUCH AS A CODE CONDUCT FOR BROKERS AND DEALERS.

IT IS PROPOSED ALSO THAT THE COMMITTEE WILL EXAMINE ALLEGATIONS WHICH ARE MALPRACTICE OR NON-COMPLIANCE WITH THE CODE OF CONDUCT REFERRED TO IT.

OF

ALSO UNDER ITS PROPOSED TERMS OF REFERENCE, THE COMMITTEE IS TO AND CONSIDER MATTERS WHICH ARE RELEVANT TO THE WELL-BEING, EFFICIENCY

NEED OF FUTURE DEVELOPMENT OF THE MARKETS, INCLUDING THE STAFF OF DEALING ROOMS AND BROKING FIRMS.

TRAINING

THE

REGARDING ITS PROPOSED STRUCTURE, THE DIRECTOR OF THE OFFICE OF THE DEPUTY EXCHANGE FUND WILL BE THE CHAIRMAN OF THE COMMITTEE. COMMISSIONER OF BANKING WILL BE AN EX-OFFICIO MEMBERS.

/OTHER MEMBERS