- Review on the corporate governance requirements under the Listing Rules
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The consultation period was extended to 24 May. HKEx received a large number of responses in different formats. Comments are being consolidated for analysis.
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HKEx expects to reveal a summary of responses to the consultation on corporate governance by the end of this year.
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- Review of practices on dissemination of listed issuers' announcements
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The consultation period ended on 2 April. Market response has been generally favourable. HKEx will finalise its position shortly and inform the market of any new developments.
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HKEx is finalising its position. It is expected to announce the consultation results and overall implementation plan in November/December 2002.
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- Extension of trading hours
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No mentioning in the report.
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HKEx's Board of Directors approved in principle on 26 July an extension of trading hours. It is anticipated that the extended trading hours will be implemented by early 2003. An overall implementation plan including market readiness programme is being prepared and market participants are to be informed as and when appropriate.
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- Co-listing and possible trading collaboration with London Stock Exchange
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HKEx will consult market participants on co-trading with London Stock Exchange.
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HKEx is surveying Stock Exchange Participants on a possible market model for co-trading and the demand for trading British stocks in Hong Kong. Major trade bodies and market participants were interviewed. The results of discussions with market participants are expected to be analysed by the end of October.
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- Optional upgrade of the throttle rate of Open Gateways to AMS/3
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HKEx's Board of Directors approved a scheme in March that enables Stock Exchange Participants to increase the throttle rate of their Open Gateways to AMS/3.
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The AMS/3 host network and individual Stock Exchange Participants' circuits are being upgraded to facilitate the increased throttle rate, with the project's completion expected by the end of October. Thereafter, market rehearsals will be conducted. The upgraded network is expected to be available for production use before year-end. Stock Exchange Participants were informed of the application details for increased throttle rates in early October.
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- Mini-Hang Seng Index Options
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No mentioning in the report.
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HKEx plans to introduce Mini-Hang Seng Index Options on 18 November.
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- Development and trading of Equity Linked Instruments (ELI)
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Market model has been finalised. Rule changes announced in June came into effect on 1 July. First listings are expected in early August.
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The first six ELI were listed on 5 August and several more have been listed since then. Promotion and education will continue throughout the coming months. Work has started on Phase II of the project, which will allow foreign stocks, baskets of stocks and indices to be underlying instruments.
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- Upgrade of Central Clearing and Settlement System (CCASS/3)
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CCASS/3 Stage 1 was launched at the end of May and is now under an extended stabilisation period. Market rehearsals for Stage 2 rollout are scheduled for July.
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HKEx aims to implement CCASS/3 Stage 2 before year-end, following further market rehearsals, which are being scheduled.
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- Integration of derivatives clearing
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The new Derivatives Clearing and Settlement System (DCASS) will replace the existing HKCC (Intracs) and SEOCH (TOPS) clearing systems to provide an integrated and state-of-the-art solution for futures and options clearing. The implementation of DCASS is progressing through a formal test programme.
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HKEx plans to conduct a series of internal tests and market rehearsals to ensure market readiness. HKEx aims to introduce DCASS in the first quarter of next year.
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- Third Party Clearing
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Third Party Clearing entails the transfer of clearing obligations from a trade-executing Exchange Participant to a Clearing Participant. The project was put to the HKEx Clearing Consultative Panel for comments on 5 June and received general support from the panel. A consultation paper will be published soon for full market consultation.
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HKEx is evaluating responses to its consultation paper on Third Party Clearing published on 10 July. HKEx is also finalising the operating model for Third Party Clearing.
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