ENG-2016 — Page 108

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Financial and Monetary Affairs

Statistics on Derivatives Market Turnover (million contracts)

2014

2015

2016

All options and futures contracts

142

190

188

Of which:

HSI Futures

17

21

32

H-shares Index Futures

22

33

33

HSI Options

8

8

9

H-shares Index Options

9

15

19

Stock Options

75

92

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At the end of 2016, there were 76 SFC-authorised automated trading services providers, comprising mainly foreign exchanges and regulated entities. They provide automated trading services by means of electronic facilities, instead of a recognised exchange company or 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). Its work can be divided into five areas: intermediaries, investment products, listings and takeovers, market infrastructure and trading, and enforcement.

Intermediaries - The SFC sets standards for industry practitioners seeking to be, and to remain, licensed. It supervises licensed corporations, including stock brokers, futures and leveraged forex dealers, fund managers, investment and corporate finance 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 SFC performs 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 SEHK's listing-related functions and the merger, takeover, privatisation and share buy-back activities of public companies in Hong Kong. It monitors the timeliness of corporate disclosures under the statutory inside information disclosure regime and vets listing applications alongside the SEHK under a dual filing regime, in addition to enhancing listing rules. It also performs detailed reviews of specific companies and broader thematic reviews of market activities which may signal corporate misconduct.

Market infrastructure and trading - The SFC supervises HKEX's exchanges and clearing houses, share registrars and automated trading services, including overseas exchanges and clearing houses operating in Hong Kong.

Enforcement - The SFC takes firm and prompt action to combat misconduct and malpractice in the securities and futures markets. It can discipline licensed intermediaries through

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