XN000022-1996-11-20 — Page 52

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Daily average turnover at Hong Kong Futures Exchange

Following is a question by the Hon Chim Pui-chung and a written reply by the Secretary for Financial Services, Mr Rafael Hui, in the Legislative Council today (Wednesday):

Question:

Is the Government aware of:

(a)

(b)

Answer:

(a)

(b)

the daily average turnover of stock futures since their introduction at the Hong Kong Futures Exchange (HKFE); and

if the turnover mentioned in the answer to (a) above is lower than expected, whether consideration will be given to asking the HKFE to cease stock futures trading?

Since the introduction of stock futures contracts in the Hong Kong Futures Exchange (HKFE) in March 1995, the average daily turnover up to end October is 11.3 contracts.

The HKFE did not indicate the level of turnover it expected at the time of the launch of stock futures contracts. The HKFE is licensed under the Commodities Trading Ordinance and is subject to regulation by the Securities and Futures Commission. So long as the HKFE complies with the regulatory requirements, it is free to decide whether to continue or discontinue the trading of any products on the Exchange. So far, the HKFE has no plans to discontinue trading of stock futures contracts.

End