TNAG-1765-FCO40-2519-Hong-Kong-stock-market-and-exchange-rate-1989 — Page 195

P.09/13

SECRETARIAT PRESS OFFICE

892 5 868 5212

F.US

1988-06-01. 18:24 G. I.S

N-JUN-1888

17:36

1

7

(2)

We

"the propose

professional,

two

development

•

of a staff of

in the

independent executives

Exchanges, with the Exchange governing

bodies setting policy and the executives

implementing it." We develop this thinking

in Chapters IV and VI. At this point I think

is

appropriate to recognise the

it

considerable

steps taken by the new

management OF the Stock

Robert Fell and of the

under Mr. Wilfrid Newton

Thorpe in carrying out

while we have been at work.

Exchange under Mr.

Futures Exchange

and MI. Phillip

important reforms

(3)

We propose "an extension Of the Stock

Exchange settlement period to three days

which should be

strictly enforced and the

early development

of

central clearing

system." It was this recommendation which

probably gave U$ the most difficulty. We

discuss the matter at great length in Chapter

V. Settlement is fundamental to the systemic

stability of a market. A full recognition of

the

risks

involved is vital.

Such

recognition was not always present in Hong

Kong before October.

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