- Regulation of sponsors and independent financial advisers
|
Not included in this issue.
|
Consultation period ended on 31 July 2003. Responses are currently being analysed. HKEx anticipates publishing the results and conclusions in the fourth quarter of 2003.
|
- Proposed amendments to the Listing Rules relating to corporate governance issues
|
A report on conclusions from the market consultation was issued on 17 January 2003. Rule amendments are being handled and are expected to be considered by the Listing Committee in the third quarter of 2003.
|
A report on conclusions from the market consultation was issued on 17 January 2003. Rule amendments were considered by the Listing Committee in mid-August 2003. A small number of outstanding items are due for consideration by the Listing Committee early in the fourth quarter of 2003. HKEx will update the market on the issues thereafter.
|
- Exploration of new financial products and review of existing products
|
China-related stock index futures
Not included in this issue.
|
China-related stock index futures
HKEx expects to announce in late October 2003 details on the introduction of a stock index futures contract on Mainland incorporated companies listed in Hong Kong.*
|
|
Capital Protected Instruments HKEx is discussing with the Securities and Futures Commission (SFC) the launch of Capital Protected Instruments under Chapter 15A of the Stock Exchange Listing Rules, which covers structured products. |
Capital Protected Instruments
The market infrastructure for Capital Protected Instruments has been finalised and approved by the SFC. Preparations are now underway for the introduction of a framework for the listing of Capital Protected Instruments on the Stock Exchange. |
|
Flexible Options
HKEx will narrow the strike intervals for existing stock option classes by phases instead of developing Flexible Options. The strike intervals for options on HSBC Holdings Plc and Hang Seng Bank Ltd for selected months were narrowed by 50 per cent effective 30 April 2003 and market responses have been positive. |
Flexible Options
HKEx will review the trading activities in the additional strike series for options on HSBC Holdings Plc and Hang Seng Bank Ltd by the end of October 2003, and it will consider narrowing strike intervals for other option classes with high underlying share prices.** |
|
Cash settled Exchange Fund Note futures
The introduction of a cash settled Exchange Fund Note futures contract will be subject to further review by the Hong Kong Monetary Authority in the fourth quarter of 2003. |
Cash settled Exchange Fund Note futures
HKEx will further consult the relevant authorities on this product concept. |
Equity Linked Instruments
HKEx plans to have discussions with market participants in the fourth quarter of 2003 with a view to expanding the scope of eligible underlying securities for the issuance of Equity Linked Instruments. |
Equity Linked Instruments
HKEx plans to invite the market to give comments on the further development of the Listed Equity Linked Instruments market. |
- Consultation on reducing board lot size and narrowing minimum spreads
|
The study on board lots has been temporarily shelved due to lack of strong preference from the market. HKEx intends to consult the market on proposals to tighten the trading spreads later this year.
|
An internal review of the trading spreads is in progress as part of the preparations for the publication of a consultation paper on the subject.
|
- Upgrade of HKATS (Hong Kong Futures Automated Trading System) to OMex 17.1
|
Internal tests (Users Acceptance Test, Integration Test) have been completed successfully. HKEx has invited an independent party to review the coverage and adequacy of these tests as requested by the SFC. External tests with Participants will be conducted from August this year. Target for rollout is the fourth quarter of 2003.
|
HKEx upgraded HKATS from OMex 15.2 to OMex 17.1 DC (deal capture) version on 6 October as part of its continuing efforts to further strengthen its market infrastructure. OMex 17.1 CL (clearing) version will be introduced later for joint use by HKATS and DCASS (see Item 6 - Integration of derivatives clearing systems).
|
- Integration of derivatives clearing systems
|
The remaining DCASS (Derivatives Clearing and Settlement System) development and testing is progressing in line with the revised schedule. The DCASS implementation programme including production readiness and market rehearsals are now scheduled for January and February of 2004. The launch of DCASS is now targeted for the first quarter of 2004.
|
The DCASS launch is scheduled for the first quarter of 2004. DCASS will replace TOPS, the stock options clearing system operated by The SEHK Options Clearing House, and INTRACS/400, the futures and options clearing system operated by the HKFE Clearing Corporation.
|
- Enhancement of IP (Investor Participant) accounts in the Central Clearing and Settlement System (CCASS)
|
HKEx is preparing a consultation paper to set out the proposed IP account model and the implications of implementing the model on market stakeholders in Hong Kong, and to seek market feedback thereon. The consultation paper is expected to be issued in the third quarter of 2003.
|
The proposed consultation on enhancement to CCASS IP accounts is now rescheduled for late 2003/early 2004.
|
- Scripless market (as recommended in the 1999 report by the Steering Committee on the Enhancement of the Financial Infrastructure)
|
HKEx is preparing a consultation paper on a proposed operational model for a scripless securities market in Hong Kong, and to seek market feedback thereon. The consultation paper is expected to be issued in the third quarter of 2003.
|
Publication of a consultation paper on a proposed operational model for a scripless securities market is planned for the second half of October 2003. HKEx welcomes any comments from the market on the proposed operational model during the two-month consultation period which will end in December 2003.***
|
- Consolidation of clearing houses
|
HKEx is evaluating the implementation a single clearing house covering both securities and derivatives market products in Hong Kong.
|
HKEx is evaluating the pros and cons of consolidating its three clearing houses which are now providing clearing and settlement services for the securities market, futures market and stock options market respectively.
|