Hong Kong Exchanges and Clearing Limited (HKEx) notes the findings contained in the review report on the derivative warrant market in Hong Kong issued by the Securities and Futures Commission (SFC) today (Friday). HKEx generally supports the direction of the proposals made in the report and will work closely with the SFC and the industry to further develop specific market enhancement proposals.

"HKEx has strived to create an evolving regulatory framework for the issuance and trading of derivative warrants and other structured products that is transparent and tailored to meet market needs, consistent with international standards, and which recognises that there is substantial retail interest in dealing in the products," HKEx's Chief Executive, Paul Chow, said.

"We will continue to work closely with the SFC on measures to strengthen the derivative warrant market in Hong Kong.

"We agree that education is important.  HKEx has a continuing educational programme to explain to market participants including the investing public the features and risks of derivative warrants, and we will continue to allocate resources to investor education to help further increase investors' understanding of the products traded on our markets," Mr Chow added.