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1. |
Possible Changes to the Requirements for Overseas Companies Seeking Listings in Hong Kong, including those seeking secondary listings |
HKEx is working closely with the Securities and Futures Commission (SFC) with a view to releasing a consultation paper within a few months. The objectives are to clarify and streamline the requirements for listing overseas companies and to provide a disclosure-based approach to secondary listings of seasoned issuers from reputable overseas exchanges.
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HKEx is working closely with the SFC with a view to clarifying and streamlining the requirements for listing overseas companies and to provide a disclosure-based approach to secondary listings of seasoned issuers from reputable overseas exchanges. |
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2. |
Consultation on the Placing of Shares at Initial Public Offering (IPO) and Pre-IPO Investments |
At the moment, the interim guidance issued by the Listing Committee appears to be well understood and accepted by market participants. HKEx will monitor developments carefully to see if further guidance is needed.
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HKEx is conducting discussions with market practitioners to see whether further guidance is needed. |
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3. |
Reporting on Environmental and Sustainability Issues |
A consultation paper on the draft Environmental, Social and Governance Reporting Guide was published on 9 December 2011 and the deadline for replies is 9 April 2012.
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HKEx is analysing the more than 100 responses received and plans to publish consultation conclusions later this year. The responses have been posted on the HKEx website. |
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4. |
Simplification of Prospectuses and Related Documents |
HKEx published a guidance letter, GL 27-12, on the HKEx website on 12 January 2012 to give guidance on how to draft the “Summary and Highlights” section of a prospectus in a way that is concise, easy to read and in plain language. |
On 19 March 2012, HKEx held a half-day free seminar to provide guidance on drafting and presenting a prospectus that is clear, brief and easy to understand while satisfying the disclosure requirements.
The four speakers used a case study of a Hong Kong prospectus, international practices, and re-drafting exercises to illustrate how to simplify prospectuses and write in plain language. Seminar materials are available on the HKEx website.
HKEx plans to follow up with further guidance and possibly, seminars.
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5. |
Study on After-hours Futures Trading
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HKEx published a consultation paper in May 2011 on after-hours futures trading (AHFT). On 15 December 2011, HKEx published its consultation conclusions and announced its plan to introduce AHFT. The target for implementation is the second half of 2012.
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HKEx is rolling out a comprehensive communication plan for Exchange Participants, Clearing Participants and information vendors to facilitate their preparation work for AHFT.
HKEx will announce the implementation date in due course after receiving regulatory approval of the related rule amendments and ascertaining market readiness.
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6. |
Exploration of New Financial Products/Services and Review of Existing Products/Services
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Volatility Index-related Products
HSI Volatility Index futures (VHSI futures) will commence trading on 20 February 2012. HKEx is rolling out educational and marketing activities for VHSI futures.
RMB Currency Futures – USD/CNH Futures
Not included in this issue.
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VHSI futures commenced trading on 20 February 2012.
HKEx has announced a plan to introduce RMB currency futures that will be settled by exchange of principal in the third quarter of 2012. In order to help Exchange Participants prepare for the launch, HKEx is organising several seminars to explain the key trading, clearing and risk management arrangements for this new product. HKEx is also conducting a joint promotional programme from July to December 2012 to support Exchange Participants in promoting USD/CNH futures to their existing clients and potential new clients. Exchange and Clearing Participants have been requested to review their front and back office systems to support the product. Fifty-nine Participants joined a readiness test conducted by HKEx on 30 June 2012 and a second readiness test will be scheduled in August 2012.
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7. |
Consultation on a Scripless Securities Market |
The Scripless Securities Market Working Group has completed its study of the operational details of the proposed model which will form the basis for the SFC’s consultation on the new subsidiary legislation under the Securities and Futures Ordinance in 2012.
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HKEx is now supporting the SFC in its preparation of the draft subsidiary legislation. |
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8. |
Establishment of Clearing House for Over-the-counter (OTC) Derivatives Traded in Hong Kong |
HKEx responded to the consultation paper on legislative amendments. System implementation has started and the risk management and operations models are being finalised. HKEx is also engaging potential participants. |
System implementation work is progressing as planned. HKEx held on-boarding seminars in March and May 2012 to introduce the operating and risk management models for its OTC clearing services. More events will be scheduled for the coming months.
HKEx has started consultation of the draft OTC clearing house rules with all the entities that have signed the Confidentiality Agreement.
An interim measure to support voluntary clearing of OTC derivatives transactions in Hong Kong through a recognised clearing house in the city became effective in late June 2012. The full legislative reforms on mandatory clearing and reporting are targeted for mid-2013.
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9. |
Next Generation Market Data System (NGMDS) |
HKEx has begun developing a new market data system to consolidate the market data distribution for all HKEx’s asset classes through a single platform. The NGMDS is targeted to be rolled out in HKEx’s securities market in around mid-2013. |
System development for the NGMDS, now known as HKEx Orion Market Data Platform, is in progress. An information paper has been published to facilitate Information Vendors’ preparation and readiness. HKEx aims to start software testing in the second half of 2012.
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10. |
Technology Upgrade for Derivatives Market Systems |
Not included in this issue. |
HKEx is upgrading its HKATS and DCASS systems to the Genium trading and clearing technology platform provided by NASDAQ OMX. The new technology will deliver multi-fold improvement in capacity and latency when it is rolled out by the end of 2013 to support further development of HKEx’s derivatives market.
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11. |
Central Gateway Facility |
Not included in this issue. |
At the end of June 2012, HKEx appointed Millennium IT to commerce the implementation of a Central Gateway facility for Participant access to its securities market trading system. HKEx is aiming for production rollout by the fourth quarter of 2013.
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12. |
New Cash Market Trading System |
Not included in this issue. |
HKEx has commenced evaluating technology components for a new securities market trading system with lower latency, higher capacity and more functionality than its current system. The evaluation and prototyping will be completed by the end of 2012 and the corresponding implementation will commence thereafter for production rollout at the end of 2014.
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