ENG-2017 — Page 115

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Financial and Monetary Affairs

Statistics on Derivatives Market Turnover (million contracts)

2015

2016

2017

All options and futures contracts

190

188

215

Of which:

HSI Futures

21

32

31

H-shares Index Futures

33

33

29

HSI Options

8

9

10

H-shares Index Options

15

19

20

Stock Options

92

74

106

At the end of 2017, there were 41 SFC-authorised automated trading services providers, comprising mainly regulated foreign exchanges and clearing houses, and other 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, futures and OTC derivatives.

Securities and Futures Commission

As Hong Kong's statutory securities and futures market 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 maintains a robust regulatory regime for, and performs its gate- keeping functions in, authorising investment products offered to the public in Hong Kong under the SFO and monitoring compliance with disclosure and other requirements. It formulates policies about the regulation of the asset management industry, and pursues initiatives that facilitate market growth and product innovation with the overall goal to develop Hong Kong as a full-service international asset management centre and preferred location of fund domicile.

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 conducts a daily review of corporate announcements under the statutory corporate conduct and inside information disclosure provisions. It vets listing applications alongside the SEHK, in addition to enhancing listing rules.

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

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