|
1. |
Review of Chapter 18 of the Listing Rules |
HKEx has been discussing some technical issues with market participants. Draft consultation conclusions are scheduled to be considered at the Listing Committee's April policy meeting.
|
The consultation conclusions on New Listing Rules for Mineral Companies were published on 20 May. The new Rules became effective on 3 June. |
|
2. |
Consultation on Acceptance of Mainland Accounting and Auditing Standards and Mainland Audit Firms for Mainland Incorporated Companies Listed in Hong Kong
|
Regulators in the Mainland and Hong Kong are continuing their work to finalise necessary arrangements for implementation of the proposals. |
The Securities and Futures Commission and the Hong Kong Institute of Certified Public Accountants are working to finalise necessary arrangements for implementation of the proposals.
|
|
3. |
Consultation on Proposed Changes to the Requirements for Circulars and Listing Documents of Listed Issuers
|
HKEx has been discussing some technical issues with market participants. Draft consultation conclusions are scheduled to be considered at the Listing Committee's April policy meeting. |
The consultation conclusions were published on 20 May. The Rule amendments became effective on 3 June.
|
|
4. |
Consultation on Proposed Amendments to the Listing Rules on Connected Transactions
|
HKEx has been discussing some technical issues with market participants. Draft consultation conclusions are scheduled to be considered at the Listing Committee's April policy meeting. |
The consultation conclusions were published on 20 May. The Rule amendments became effective on 3 June. |
|
5. |
Exploration of New Financial Products / Services and Review of Existing Products / Services
|
Volatility Index-related Products
HKEx and an index company have solicited comments from market participants regarding the volatility index calculation methodology and are working on adaptations relevant to the Hong Kong market.
Dividend Point Index Futures
Not included in this issue. |
In progress.
HKEx is studying the feasibility of introducing futures contracts based on the HSI Dividend Point Index and HSCEI Dividend Point Index, which were introduced by Hang Seng Indexes Company Limited on 12 July to provide the market with indicators to track cash dividends from constituent stocks of the Hang Seng Index and the Hang Seng China Enterprises Index respectively. HKEx will make a further announcement if it decides to introduce futures contracts based on the dividend point indices.
|
|
6. |
T+2 Finality for Stock Exchange Trades and Settlement Instructions |
The consultation closed on 26 February. There were 29 submissions. All responses are now being analysed. The consultation conclusions will be published later this year.
|
The consultation conclusions will be published in the third quarter this year. |
|
7. |
Consultation on a Scripless Securities Market
|
The consultation closed on 31 March. There were over 40 submissions. Submissions are being reviewed by the Scripless Securities Market Working Group, led by the Securities and Futures Commission with HKEx and the Federation of Share Registrars participating. Consultation conclusions will be issued in due course.
|
The consultation conclusions will be published in the third quarter this year.
|
|
8. |
Automation of Stamp Duty Reporting and Payment |
To assist Exchange Participants (EPs) in preparing for the automation, HKEx issued a circular on 12 April to invite them to attend a seminar to be held in the last week of April to explain the automation model to EPs and demonstrate stamp duty report submission via a new web-based electronic communication platform. HKEx aims to introduce electronic stamp duty reporting and payment in the second half of this year, subject to market readiness. |
HKEx held three EP seminars on the subject in the last week of April with a total of 627 attendees. All 465 trading EPs confirmed that they would complete any system and operational changes they needed to make before the end of July. HKEx plans to organise practice sessions and a market rehearsal in August for EPs' staff to familiarise themselves with the new stamp duty arrangement. The automation is scheduled to be implemented in September, subject to market readiness.
|
|
9. |
Derivatives Market System Capacity and Technology Upgrade
|
HKEx is upgrading the capacity and technology of HKATS, DCASS, PRS and their satellite applications, which will further increase the group's processing capability to cater for business growth and expansion over the next few years. |
The capacity and technology upgrade of HKATS and DCASS is making good progress. The plan is to roll out the platform and infrastructure upgrade - Phase 1 - by the fourth quarter this year to increase the order capacity of HKATS to 21,000 order book changes/second (OBC/S) from the original of 8,100 OBC/S. The design of the DCASS software will be enhanced in Phase 2 and rolled out in mid-2011.
|
|
10. |
Securities Market System Capacity and Technology Upgrade (also known as AMS/3.8 and MDS/3.8)
|
Not included in this issue. |
This project aims for 10-fold improvement over the existing securities trading system capacity to achieve an initial capacity of 30,000 orders per second (scalable to 150,000 orders per second if necessary), as well as an average order processing latency of nine milliseconds, to deliver significant advancement in the capacity and performance of the securities market infrastructure.
An exposure paper will be published for Exchange Participants and information vendors at the end of the third quarter of this year for their planning and preparation.
The project plan calls for implementation by the end of 2011. |