ENG-2015 — Page 105

4

Financial and Monetary Affairs

In the derivatives market, about 190 million futures and options contracts were traded, 33.3 per cent more than in 2014. Trading of major derivatives products included Hang Seng Index (HSI) Futures with a total turnover of 21.24 million contracts; H-shares Index Futures with a total turnover of 33.38 million contracts; HSI Options with a total turnover of 7.52 million contracts; H-shares Index Options with a total turnover of 15.30 million contracts; and Stock Options with a total turnover of 92.46 million contracts.

Statistics on Derivatives Market Turnover (million contracts)

2013

2014

2015

All options and futures contracts

130

142

190

Of which:

HSI Futures

20

17

21

H-shares Index Futures

21

22

33

HSI Options

9

8

8

H-shares Index Options

8

9

15

Stock Options

61

75

92

At the end of 2015, there were 31 automated trading services providers, comprising mainly foreign exchanges and regulated entities, authorised by the SFC to provide automated trading services. Such services are provided by means of electronic facilities, instead of a recognised exchange company or a recognised clearing house, to transact or settle transactions in securities or futures contracts.

Securities and Futures Commission

As Hong Kong's statutory securities and futures regulator, the SFC derives its statutory powers from the Securities and Futures Ordinance (SFO). The SFC's work can be divided into five areas: intermediaries, investment products, listings and takeovers, market infrastructure and trading, and enforcement.

Intermediaries - The SFC's licensing regime sets standards for industry practitioners seeking to be, and to remain, licensed. It supervises licensed corporations, including stock brokers, investment banks, futures and leveraged forex dealers, fund managers, investment advisers and credit rating agencies, with a particular focus on their business conduct and financial soundness.

Investment products - The SFC supports the development of Hong Kong both as an asset management hub and as a premier offshore RMB centre. While facilitating market growth and product innovation, the commission continues to perform its gate-keeping functions in authorising investment products offered to the public and in monitoring their compliance with disclosure and other requirements.

Listings and takeovers - The SFC oversees the listing-related functions of the SEHK, and the merger, takeover, privatisation and share buy-back activities of public companies in Hong Kong.

73

Page 105Page 106