TNAG-1765-FCO40-2519-Hong-Kong-stock-market-and-exchange-rate-1989 — Page 196

1988-06-01 18:24

G.I.S

P. 10/13

01-JUN-1986

17:28

SEIFETARIAT PRESS OFFICE

852 5 88 5210

P.07

"

(4) We propose "the continuation of the Hong Kong

Futures Exchange and its stock index contract

but with the clearing and guarantee system

strengthen the tisk

being restructured to

management arrangements;

was

Or

in particular, the

clearing house should become part of the

Exchange and the guarantee should be backed

by a Clearing Members' Fund." A key question

whether

not the Hong Kong Futures

Exchange and the Hang Seng Index Futures

contract should continue. We conclude in the

first part of Chapter VI that it should but

scme reforms are essential and others are

They are reviewed in detail in

desirable.

Chapters VII and VIII.

(5)

Turning to the statutory authority we propose

"replacing the two Commissions and the

Commissioner's

with

a single

Office

independent statutory body outside the civil

service.

full time

the market.

consist of

It should be headed and staffed by

regulators and funded largely by

(We suggest that the Commission

4 full-time members and 3

It should be charged with

markets and the

In particular, it

part-time.)

ensuring the integrity of

protection

Of investors.

✓

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