HK SFC to Regulate Electronic Trading SystemThe Securities and Futures Commission (SFC) of Hong Kong is to issue guidelines to regulate electronic trading systems and online brokers, reported the "South China Morning Post" on November 14.A consultation paper would be sent out next month to draw comments from the market on how to regulate Internet trading, said Andrew Sheng, chairman of SFC on November 13. In two weeks, legislators will begin debate on the composite Securities and Futures Bill, which if passed will empower the SFC to regulate online brokers as well as the operators of electronic communication networks. These networks operate as a cyber-exchange which allows buyers and sellers to trade stocks, bonds, or fixed income products via the Internet. The present securities law, drafted more than 10 years ago, contains no provisions regulating Internet trade. Meanwhile, SFC executive director Andrew Procter said that the proposed guidelines would list the criteria needed by the networks to be eligible for a license from the SFC. |
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