ENG-2008 — Page 115

Financial and Monetary Affairs | 71

the gold bullion market without having to take physical delivery of gold. During the year, seven new ETFs were authorised, increasing the total number of ETFS traded on the SEHK to 24, offering a wide range of investment exposures to world, regional and Mainland indices and commodities for investors.

The number of newly listed Callable Bull/Bear Contracts (CBBCs) leaped to 4 231 from 391 a year ago. As at the end of 2008, there were 1 314 CBBCs in the market, compared with 131 a year ago. Turnover of CBBCs surged from $71.4 billion in 2007 to $1,039.6 billion in 2008. A total of 3 011 derivative warrants were listed on the securities market at the end of 2008. Turnover of derivative warrants was $3,434 billion, which represented nearly 20 per cent of the total market turnover. Stock options turnover increased from 45 982 968 contracts in 2007 to 54 692 865 contracts in 2008.

In the futures market, a number of new records were set as a result of strong growth in trading volume and open interest. Over 105 million futures and options. contracts were traded, representing a year-on-year increase of 19 per cent. The Hang Seng Index Futures and the H-shares Index Futures recorded a turnover of 21 716 508 contracts and 14 440 965 contracts respectively, rising 27 per cent and 33 per cent from 2007.

The Gold Futures was re-launched in October 2008 and recorded a total turnover of 3 075 contracts. It is expected that more new products, including carbon emission products, will be introduced in the coming year to further enrich the product base of the Hong Kong market.

The SEHK operates the Third Generation Automatic Order Matching and Execution System (AMS/3) for securities trading. AMS/3 provides an electronic platform for trading equities, derivative warrants, CBBCs, debt securities, unit trusts/ mutual funds and equity linked instruments. It also provides facilities and investor access channels that make securities trading more accessible.

The Hong Kong Securities Clearing Company Limited (HKSCC), a wholly owned subsidiary of HKEX, operates the latest generation of Central Clearing and Settlement System (CCASS/3) for clearing and settlement of securities transactions concluded at the SEHK. The CCASS/3 is a computerised book-entry system that operates on an open, secure and flexible modularised architecture. In addition to brokers and custodians, certain CCASS services are also available to retail investors. For example, investors may open Investor Participant Accounts with the clearing company to keep their securities in CCASS.

The HKFE operates the Hong Kong Futures Automated Trading System for the trading of futures and options contracts and the Derivatives Clearing and Settlement System (DCASS) for the clearing and settlement of such contracts. DCASS shares the same common database and system infrastructure as the trading system.

The HKEX upgraded the capacity and functionality of the above mentioned trading, clearing and settlement systems in 2008.