Basics of the organisation
HKEX is a leading global operator of exchanges and clearing houses based in Hong Kong, Asia’s premier international financial centre, and one of the world’s largest exchange groups by market capitalisation.
HKEX operates the securities and derivatives markets and their related clearing houses and is the frontline regulator of listed companies in Hong Kong. It also owns the London Metal Exchange (LME) in the UK, the world's premier base metals market.
In Hong Kong, HKEX regulates listed issuers and administers listing, trading and clearing rules. It also provides services, primarily at the wholesale level, to participants and users of its Exchanges and Clearing Houses, including issuers and intermediaries (such as investment banks or sponsors, securities and derivatives brokers, custodian banks and information vendors) which service investors directly. These services comprise trading, clearing and settlement, deposit and nominee services and information services across multiple products and asset classes.
HKEX operates the only recognised stock market and futures market in Hong Kong through its wholly-owned subsidiaries, the Stock Exchange and Hong Kong Futures Exchange Limited. HKEx also operates four clearing houses, which are the only recognised clearing houses in Hong Kong: Hong Kong Securities Clearing Company Limited (HKSCC), HKFE Clearing Corporation Limited (HKCC), the SEHK Options Clearing House Limited (SEOCH) and OTC Clearing Hong Kong Limited (OTC Clear). HKSCC, HKCC and SEOCH provide integrated clearing, settlement, depository and nominee activities to their participants, while OTC Clear provides OTC interest rate derivatives and non-deliverable forwards clearing and settlement services to its members. HKEX provides market data through its data dissemination entity, HKEX Information Services Limited.
HKEX has a global leadership position in base metals futures and options trading through the LME. The LME brings together participants from the physical industry and the financial community to create a robust and regulated market where there is always a buyer and a seller, where there is always a price and where there is always the opportunity to transfer or take on risk - 24 hours a day. The LME also has close links to industry. The LME provides producers and consumers of metal with a physical market of last resort and the ability to hedge against the risk of rising and falling world metal prices.
HKEX is also an equal joint-venture partner with the Shanghai Stock Exchange and Shenzhen Stock Exchange in China Exchanges Services Company (CESC), which is registered and incorporated in Hong Kong. CESC aims to contribute to the further internationalisation of China's capital markets and provide global investors with exposure to the world's second largest economy. It develops cross-border indices based on products traded on the three markets, develops industry classifications for listed companies, and creates information standards and products.
HKEX is committed to performing its public duty to ensure orderly and fair markets and that risks are managed prudently, consistent with the public interest and in particular, the interests of the investing public. It is also committed to working closely with the principal regulator of Hong Kong's securities and derivatives markets, the Securities and Futures Commission, an independent statutory body responsible for administering the laws governing the markets, and facilitating and encouraging the development of the markets.
Summary of vision and outlook
As a commercial entity with public duties, responsible for the operation of the central marketplace, HKEX must carefully consider the broader interests of the market. In addition, its initiatives should reinforce Hong Kong's standing as an international financial centre and support the country's further development.
HKEX's mission statement for 2013-2015: We aim to be the global exchange of choice for our China clients and our international clients seeking China exposure.