TNAG-1765-FCO40-2519-Hong-Kong-stock-market-and-exchange-rate-1989 — Page 109

A

For information (12.7.88)

INTRODUCTION

CONFIDENTIAL

XCCI (88) 44 23

Copy No.

NOTE FOR EXECUTIVE COUNCIL

THE SECURITIES REVIEW COMMITTEE REPORT PAPER NO. 3

TIMETABLE FOR ADDRESSING

THE MAJOR RECOMMENDATIONS

OF THE SECURITIES REVIEW COMMITTEE

t

70

MKC 100/

15 JULY

л

Members will be asked to note the contents of this memorandum which has been prepared for their information. This memorandum sets out a rough timetable for implementing the principal recommendations of the Securities Review Committee (SRC).

BACKGROUND

2

On 31 May 1988, having considered memorandum XCC (88) 78 (Annex A), the Council advised and the Governor ordered that а timetable for addressing the major recommendations of the SRC in paragraph 6 of Annex A should be submitted to the Council as quickly as possible.

3

The implementation of the recommendations question will involve the following

(a) the setting up of a new independent statutory regulatory authority outside the civil service which it is proposed should be called the Securities and Futures Commission (SFC);

(b)

the reconstitution of the Stock Exchange of Hong Kong (SEHK), in particular, its governing body;

the establishment of a central clearing and depository system for stock transactions;

(c)

(d)

an extension of the settlement stock transactions; and

(e)

period for

the reconstitution of the Hong Kong Futures Exchange (HKFE) and strengthening of its risk-management structure.

in

CONFIDENTIAL