CONFIDENTIAL
(c)
(d)
(e)
self-regulatory system, whereby the Exchange Committee sets policy and the executive implements it;
an extension of the stock exchange settlement period to three days after the trading day and the early implementation of a central clearing system; restructuring the clearing and guarantee system in the Futures Exchange with the clearing house within the Exchange backed by a Clearing Members' Fund to strengthen the risk-management functions and to facilitate information flows essential to the discharge of these functions;
replacing the two Commissions and the Commissioner's office with a single independent statutory body outside the Civil Service, made up of full-time regulators, funded largely by the market, charged with ensuring that the Exchanges properly regulate their markets and with reserve powers to regulate the marketplace directly if the Exchanges fall down on the job.
Reactions in Hong Kong
5.
The Hong Kong Government have stated that they generally endorse the thrust of the Securities Review Committee's recommendations. In consultation with those concerned, especially those in the financial and securities communities, they will proceed expeditiously to examine the proposed recommendations in detail with a view to their early implementation. Others, including present management and the Hong Kong Stock Exchange have generally welcomed the review while reserving their position on the details of the recommendaitons.
6.
If asked News Department will take the following press line:
"We welcome the publication of the Securities Review Committee's report. The Hong Kong Government are studying the
We believe that the Report will make an
recommendations carefully.
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