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HKEx: Status Report On New Product And Market Development Initiatives (Status As Of 13 January 2010)

14/01/10

The following initiatives are subject to market support and regulatory approval so they may not be implemented.  HKEx will announce further details of these initiatives as they progress.  

 

Initiative

Status on 16 October 2009

Status on 13 January 2010

1.

 Consultation on Periodic Financial Reporting

The Listing Committee proposes to consider this issue further at its policy meeting in November 2009.

At the policy meeting in November last year, the Listing Committee considered this matter and decided to hold the matter over for further consideration at the next quarterly policy meeting.

2.

 Combined Consultation on Proposed Changes to the Listing Rules

The consultation conclusions and rule amendments relating to self-constructed fixed assets and general mandates were published on 31 July and 9 October 2009 respectively. The consultation conclusions in respect of the one issue that remains under assessment (public float) will be published in due course.

 In progress.

3.

 Review of Chapter 18 of the Listing Rules

The Consultation Paper on New Listing Rules for Mineral and Exploration Companies was published on 11 September 2009 and the deadline for submissions is 11 November.

Responses to the consultation have been posted on the HKEx website. The Listing Division is analysing the responses and will publish the consultation conclusions in due course.

4. 

Consultation on Proposals to Accelerate Rights Issues and Open Offers

 The consultation paper was published on 31 July 2009 and the deadline for submissions was 30 September. The consultation conclusions were published on 18 December last year. The minimum notice period for book closure for a rights issue will be reduced to six business days (ie five clear business days). The minimum notice period for book closure for open offers will not be reduced. There are also other housekeeping amendments. The Rule amendments will come into effect on 1 February.

5.

Consultation on Acceptance of Mainland Accounting and Auditing Standards and Mainland Audit Firms for Mainland Incorporated Companies Listed in Hong Kong 

The consultation paper was published on 28 August 2009 and the deadline for submissions is 23 October. Regulators in the Mainland and Hong Kong are working closely to finalise necessary arrangements for implementation of the proposals. Upon completion of these arrangements, HKEx will publish the consultation conclusions in due course.

6.

Consultation on Proposed Changes to the Requirements for Circulars and Listing Documents of Listed Issuers 

The consultation paper was published on 18 September 2009 and the deadline for submissions is 18 November.

Responses to the consultation have been posted on the HKEx website. The consultation conclusions will be published in due course.

7.

Consultation on Proposed Amendments to the Listing Rules on Connected Transactions

 The consultation paper was published on 2 October 2009 and the deadline for submissions is 2 December. Responses to the consultation have been posted on the HKEx website. The consultation conclusions will be published in due course.

8.

 Exploration of New Financial Products / Services and Review of Existing Products / Services

Options with Flexible Features
The information paper was published on 22 September 2009 . HKEx aims to introduce Flexible Index Options early next year, pending regulatory approval.


HKEx aims to introduce Flexible Index Options in the first quarter of this year, pending successful completion of system adjustments and readiness of participating Exchange and Clearing Participants.

Emissions Products
HKEx expects to publish its consultation conclusions in the fourth quarter of 2009.


The consultation conclusions were published on 29 December last year.

HKEx considers that there is no imminent need for a CER futures market in Hong Kong at this time.

Nevertheless, HKEx reckons the carbon emission markets may become much more important in the long term. Therefore, it will continue to monitor developments on the Mainland and in other Asian markets. To help increase market knowledge, HKEx will cooperate with other organisations in providing education and training about carbon emission trading to Hong Kong 's investing community.

Volatility Index-related Products
HKEx is working with index companies to develop a volatility index for its securities market based on stock index options prices with a view to provide a benchmark of volatility for the marketplace. The project is in an early stage. HKEx will advise the market of key developments in due course.


Project is ongoing. Recent developments have included discussions with index companies about methodology for the calculation of the proposed index.
Narrower Strike Intervals for Options on Low-priced Stocks
HKEx plans to narrow strike intervals of stock options under Strike Interval Group B and add a third quarterly expiry month for the 20 most actively traded option classes and Tracker Fund options before year's end, pending regulatory approval.



The changes took effect from 2 November last year.

9. 

 Provision of Free Real-time Basic Market Prices Website Service

The Free Prices Website Service was soft-launched on 5 October 2009 on six designated websites. The official launch is set for 1 January 2010 .

 The service was officially launched on 1 January. Market feedback during the soft-launch period was positive in general.

10.

T+2 Finality for Stock Exchange Trades and Settlement Instructions

HKEx has completed the soft consultation on the proposed model and plans to issue a consultation paper in the fourth quarter of 2009.

The consultation paper was published on 27 November last year. The deadline for submissions is 26 February.

11.

Consult at ion on a Scripless Securities Market

Not included in this issue.

On 30 December last year, the Scripless Securities Market Working Group, led by the Securities and Futures Commission with HKEx and the Federation of Share Registrars participating, issued a consultation paper on the development of a scripless securities market in Hong Kong .

12.

 Au tom at ion of Stamp Duty Reporting and Payment

In progress according to plan.

 HKEx aims to introduce elect ron ic stamp duty reporting and payment in the second half of this year, subject to market readiness and rule amendments.  The project is progressing according to plan.
13.

AMS/3 Technical Revamp

HKEx aims to double AMS /3's capacity from 1,500 to 3,000 orders per second and to increase the stock page update rate from 500 to 700 stock pages per second through the revamp to accommodate further growth and new business in its securities market.

Implementation is scheduled for the first quarter of 2010, subject to successful completion of market rehearsals and the readiness of Exchange Participants and info rmation vendor systems.

 Three rounds of market rehearsals were successfully completed in the fourth quarter of last year for Exchange Participants and info rmation vendors to verify readiness of their systems. Rollout of the revamp is scheduled for the second half of January.

 

Note:

AMS/3, the Third Generation Automatic Order Matching and Execution System, is the trading system for the securities market. CCASS/3, the Latest Generation Central Clearing and Settlement System, and the Market Data Feed, or MDF, are the other major market systems supporting the securities market. HKATS, the Hong Kong Futures Automated Trading System, is the trading system for the derivatives market. DCASS, the Derivatives Clearing and Settlement System, and PRS, the Price Reporting System, are the other major market systems for the derivatives market.

Information is added after the date at the top of the column from time to time.

This report is carried in HKEx's quarterly publication, Exchange, published on 14 January 2010.