Circular to Exchange Participants - Launch of Nasdaq-Amex Pilot Program
Market Operations
24 May 2000
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Exchange Participants are requested to note that the Nasdaq-Amex Pilot Program ("Pilot Program") is scheduled to be launched on 31 May 2000. On the same day, the following securities will be admitted to trading on the Exchange under the Pilot Program:
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Stock Name
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Stock Code
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Board Lot
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AMGEN-T
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4332
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10 shares
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APPL MATERIAL-T
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4336
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10 shares
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CISCO-T
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4333
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10 shares
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DELL-T
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4331
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20 shares
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INTEL-T
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4335
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10 shares
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MICROSOFT-T
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4338
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10 shares
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STARBUCKS-T
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4337
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20 shares
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As of today, three Exchange Participants named below are granted with market making permits on the above securities:
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Morgan Stanley Dean Witter Hong Kong Securities Ltd.
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Timber Hill Securities Hong Kong Ltd.
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Operating features of the Pilot Program is as follows:
OPERATING FEATURES OF THE PILOT PROGRAM
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Trading Model
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Stock Code Range
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4331 - 4430
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Stock Name
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The stock name will carry a suffix "T" denoting that the security is not listed but admitted to trading
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Trading Platform
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AMS
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Trading Mechanism
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- Automatching; and
- Market Making
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Board Lot Size
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Range from 10 to 100 shares per board lot depending on the price of the securities at the time of admission to trading.
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| Odd Lots and Special Lots |
Allowed, except for market making orders
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| Maximum AMS Order Size |
400 board lots
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| Trading Currency |
Hong Kong dollar
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| Previous Closing Price |
There will be no display of the Previous Closing Price.
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Spread
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Same as other equity securities, based on the Spread Table (Part A) in the Second Schedule to the Rules of the Exchange.
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Short Selling
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Allowed; with exemption to Pilot Program Market Makers from the tick rule
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Transaction Levy
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Same as other equity securities, at 0.011%(to be reduced to 0.01% with effect from 12 June 2000)
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Stamp Duty
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Not applicable
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| Other Taxes, Fees and Charges |
Please refer to Hongkong Clearing for details
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Information on Pilot Program Securities
Information on Pilot Program securities will be available to the market from the following sources:
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Issuers' Disclosure
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Issuers' information will be available on Nasdaq-Amex Market Group's
web site (http://www.nasdaq-amex.com) and on EDGAR (http://www.sec.gov/edgarhp.htm). Individual issuers' web sites, which are hyperlinked from the Exchange's web site, contain information and disclosures released by the issuers.
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Subject to authorization from issuers, alerts on issuers' announcement received by the Exchange through issuer's subscription service will be displayed on the news pages (English only) and disseminated to the market on trader PCs and via Market Datafeed. The announcement will be available on the Exchange's web site.
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The Exchange's web site also contains useful links to access third party research and news reports on the Pilot Program securities in addition to financial reports and information from newspapers, magazines, news vendors and brokers.
Note: Like its U.S. counterpart, the Exchange is not in a position to verify the accuracy of the information disclosed. In addition, third party reports and analysis reflect the views of their authors or commentators.
- Stock Pages
Same as equities and other types of securities, Pilot Program securities will be assigned 4-digit stock codes ranging from 4331 to 4430. The respective stock pages will display the trading and price information of individual Pilot Program securities on a real-time basis and the same will be disseminated to information vendors.
- U.S. Market Prices and Volume
U. S. market closing prices and volume of Pilot Program securities will be disseminated as Exchange News by the Exchange to Exchange Participants and information vendors.
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Settlement
Settlement will be conducted in Hong Kong dollars on T+2 through Hongkong Clearing's CCASS on the Continuous Net Settlement basis.
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Cross Border Transfer, Corporate Actions and Nominee Services
Please refer to Hongkong Clearing.
Corporate Communications