The regulatory and operation framework has been fully tested during the unprecedented Asian financial turmoil in the last two years and proved to be effective in the maintenance of market integrity and financial stability. There is however no room for complacency. We have introduced a wide range of measures in the Report on Financial Market Review published in April 1998 and the 30-point programme announced in last September with a view to further strengthening our market systems. In view of the technological advancement, SEHK is going to implement the Automatic Order Matching and Execution System III in the near future in order to further enhance market efficiency and to pave way for the development of electronic trading. GEM serves as an alternative market to provide emerging growth companies easier access to the funds of the investing public.
GEM is open to companies from all industies and of all sizes.
Presently, a total of 12 futures and options products are traded on HKFE, including futures and options contracts on indices and interest rates and stock futures. In order to enhance its trading capacity and efficiency, the HKFE migrated the trading of its Hang Seng Index futures and options products to the Automatic Trading System on 5 June 2000. The HKFE became a fully-electronic market place after the migration. The three recognised clearing houses in Hong Kong are the Hong Kong Securities Clearing Company, the SEHK Options Clearing House Company and the HKFE Clearing Corporation, which clear and settle transactions effected on SEHK and HKFE respectively. Recent developments Advances in information technology, increasing globalisation of the international financial market as well as changes in other financial markets have eroded the competitiveness of our market.