Achievements and New Initiatives

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Achievements and New Initiatives

• Paul Chow
• Chief Executive, Hong Kong Exchanges and Clearing
  Limited
• 7 January 2005

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(No Transcript)
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New Records in the Derivatives Market
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2004 Achievements
Listing Regulation

• Streamlined enforcement process
• Implemented Code of CG Practices CG Report
• Issued rule amendments to CG issues
  initial listing criteria
• Published Listing Committee Annual Report
• Enhanced regulation of sponsors IFAs
• Published Interpretive Letters Rejection
  Letters Series on website

Trading

• Reviewed usage of Trading Hall upon expiry of
  lease and launch relinquishment programme for
  on-floor terminals
• Reviewed narrowing of trading spreads
• Reviewed market making for ETFs
• Launched new products, including H-shares Index
  Options and 4 stock options and futures on
  H-shares

Clearing

• Concluded way forward for scripless market
  operating model
• Enhanced Investor Account Service
• Signed a MOU with China Securities Depository and
  Clearing Corporation Limited

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Market Systems

• Launched DCASS
• Maintained 100 system uptime
• Given Gold Award in 2004 IT Excellence Award

Information Services

• Revamped HKEx Website
• Disseminated odd lot market data
• Expanded information dissemination in Mainland
  and Japan

China Dimension

• Strengthened Beijing Office stationed
  representatives in Shanghai and Guangzhou
• Continued market education efforts and organised
  conferences to promote services of Hong Kong
  market

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2005 Major Initiatives
Listing Regulation

• Review the role and structure of the Listing
  Committees
• Work with our Mainland counterparts to establish
  a framework for the simultaneous listing of
  H-shares in Hong Kong and A shares on the
  Mainland
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• Review the operation and regulatory policy of GEM
• Improve the efficiency of listing application and
  IPO vetting processes
• Support the establishment of statutory listing
  requirements and a more regulatory framework for
  the accounting industry
• Further efforts to enhance corporate governance
  and effective quality management after listing

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Exchange

• Implement Phase 1 of narrowing trading spreads
• Improve market-making for exchange-traded funds
• Design and begin fitting out the new
  multi-function Trading Hall
• Revamp the stock options market and introduce
  more stock options on Mainland enterprises listed
  in Hong Kong
• Consider introducing new products Callable
  Bull/Bear Certificates and futures and options on
  the FTSE/Xinhua China 25 Index
• Review position limits and market-making
  obligations in the derivatives market

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Clearing

• Implement a general collateral policy
• Implement the model for a scripless securities
  market
• Strengthen HKExs nominee services
• Establish a framework for agency arrangements in
  CCASS and overseas access to CCASS
• Consider the possibility of T2 settlement
  finality

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Information Technology

• Consolidate the existing networks for the four
  major market systems
• Upgrade host capacity and network of AMS/3
• Replace technology and system software nearing
  obsolescence and consolidate satellite
  applications
• Enhance CCASS
• Upgrade the system capacity and functionalities
  of HKATS and DCASS, and conduct a feasibility
  study of upgrade the HKATS and DCASS software
• Upgrade the HKEx website capacity and establish a
  disaster recovery website

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Information Services

• Expand the dissemination of information of the
  HKEx markets in the Mainland and other selected
  regional markets
• Recruit new information vendors and review the
  reporting and compliance regime for information
  vendors that work with HKEx
• Upgrade derivatives market data dissemination
  capacity
• Streamline processes for handling the increasing
  workload stemming from continuous increase in
  volume of issuer news and Disclosure of Interests
  filings

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Business Development Investor Services

• Continue efforts to promote services offered by
  the Hong Kong securities market to attract
  issuers and fund providers
• Continue to organise training seminars for
  investors, Exchange Participants, issuers and
  potential issuers

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THANK YOU