ENG-2007 — Page 114

74 Financial and Monetary Affairs

New features were introduced to the Stock Segregated Account with Statement Service (SSA) in January and July. SSA users can access electronic voting and enquire about their stock balances and movements in the accounts electronically through the CCASS Internet System and CCASS Phone System. Users can also opt to receive alerts via Short Message Service and by email when there is any movement in the SSA.

The information dissemination systems of the securities and futures markets were upgraded with added functions and higher efficiency.

In June 2007, the securities market entered into a new era of electronic disclosure with the rollout of the Electronic Disclosure System which provides straight- through publication of issuer documents via the HKEX website.

At year-end, there were 13 automated trading services providers, comprising mainly foreign exchanges and regulated entities, authorised by the SFC under section. 95 of the Securities and Futures Ordinance (SFO) to provide automated trading services in Hong Kong. Automated trading services are services provided through electronic facilities, not facilities provided by a recognised exchange company or a recognised clearing house, to transact or settle transactions in securities or futures

contracts.

Securities and Futures Commission

The SFC was established in May 1989 following the enactment of the Securities and Futures Commission Ordinance. The regulatory objectives of the SFC, as set out in the SFO that came into effect on April 1, 2003, are:

to maintain and promote the fairness, efficiency, competitiveness, transparency and orderliness of the securities and futures industry;

• to promote public understanding of the operation and functioning of the securities and futures industry;

• to provide protection for members of the public investing in or holding financial products;

⚫ to minimise crime and misconduct in the securities and futures industry;

⚫ to reduce systemic risks in the securities and futures industry; and

• to assist the Financial Secretary in maintaining the financial stability of Hong Kong by taking appropriate steps in relation to the securities and futures. industry.

Established as an autonomous statutory body, the SFC is responsible for regulating the securities and futures markets in Hong Kong. At year-end, the SFC had a governing body of 14 directors (the chairman, six executive directors and seven non-executive directors) appointed by the Chief Executive. The Government is not involved in the day-to-day regulation of the securities and futures industry.

The SFC is funded by the market. No government funding has been sought since 1993. The 2007-08 operating expenditure (including depreciation) is estimated to be $596.94 million.