ENG-2011 — Page 126

90 | Financial and Monetary Affairs

implemented by the SFC in October 2011 to enhance the level of the collateral and transparency of domestic synthetic ETFs.

Relevant ETF managers were required to top up the collateral levels for all of their synthetic ETFs primarily regulated by the SFC to achieve and maintain at least 100 per cent collateralisation. This enhancement serves to minimise uncollateralised counterparty risk exposure that could arise from the use of financial derivatives by synthetic ETFs in replicating index performance.

Statistics on securities market (Main Board and GEM) ($ billion)

2009

2010

2011

Number of listed companies (year-end)

1 319

1 413

1 496

Total market capitalisation (year-end)

17 874

21 077

17 537

Total equity funds raised

642

859

490

Total securities market turnover

15 515

17 210

17 154

Total number of shares traded (billion)

24 794

34 991

39 907

Number of derivative warrants (DWs) listed

3 367

5 148

4 027

(year-end)

Turnover of DWs

1 655

2 692

2 630

Number of Callable Bull/Bear Contracts

1 692

1 064

901

(CBBCs) listed (year-end)

Turnover of CBBCs

Number of ETFs listed (year-end)

Turnover of ETFs

1 676

1 455

1 852

43

69

77

500

604

545

In the derivatives market, around 140 million futures and options contracts were traded in 2011, or 21 per cent higher than in 2010. Trading of major derivatives products was active and set record highs in 2011. They included Hang Seng Index (HSI) Futures with total turnover of 23 085 833 contracts; H-shares Index Futures with total turnover of 15 003 870 contracts; HSI Options with total turnover of 10 667 426 contracts; H-shares Index Options with total turnover of 3 771 799 contracts; and Stock Options with total turnover of 74 325 068 contracts. In addition, most derivatives contracts' open interests set record highs on particular days during 2011.