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The Hong Kong Association of Online Brokers Limited

The Hong Kong Association of Online Brokers
Chairman's Report (2003/2004)

I am pleased to present my report on the Hong Kong Association of Online Brokers during the period I represented South China Securities Limited and took up the Chairmanship, as successor of Mr. Stewart Shing, from December 2003 to August 2004.

South China Securities Limited was elected as Chairman at the annual general meeting of the Association on 27 August 2003. At the meeting, term of office tenure was changed from one year to two years.

On the membership front, VC CEF Brokerage Limited (currently known as "VC Brokerage Limited") was recruited as a new member on 12 November 2003. No resignation was received during the year and so the number of members was increased to 14.

Over the period, the Association made particular effort to fulfill the objectives of promoting its communications, acting as contact point and providing forum for discussion of issues relating to the online securities and futures industry. In this regard, I would like to make a special note that a series of educational seminars on the counter measures against fraudulent web sites were organized. The Chief Executive Officer of the Hong Kong Internet Registration Corporation Limited was the guest speaker. The overwhelming attendance rate and positive media coverage were clear evidences that they were well received:

  • 20 July 2004 seminar - 89 participants.
  • 3 August 2004 seminar - 30 participants from small brokers and 33 from business associates; representatives from Financial Services and the Treasury Bureau (FSTB), Securities and Futures Commission (SFC) and the Hong Kong Exchanges and Clearing Limited (HKEx) also attended.
  • 17 August 2004 seminar - 93 participants.
  • The event was widely covered by media.

During the year, the Association has submitted the following proposals and views to the authorities:

(a) Sent out support letter in September 2003 to the SFC to host the IOSCO Annual Conference in 2006;
(b) Sent out response letter to the Security Bureau on formulating information security standards specifically tailored for the securities industry in March 2004;
(c)
 Sent out follow-up letter to the SFC regarding the guidance note on the regulation of electronic trading of securities and futures in April 2004;
(d)
 Submitted comments and summary on e-statement service to the SFC in May 2004;
(e) Submitted RTQ revamp proposal to the HKEx in June 2004.

The tenure for me to represent South China Securities Limited as Chairman of the Association has been a challenging and meaningful experience. However, the Association would not have been able to make the achievements mentioned above without the support of fellow committee and other members. As such, I would like to take the opportunity to thank them for all their contributions and support.

Steve Chan
Chairman
31 August 2004

Meetings Attended

Market Regulator
Occasion
Date

Securities and Futures Commission

 

 

Process Review Panel

29 December 2003

Regular meetings with industry associations

14 June 2004 / 29 October 2003

Working Group on Categorization of Fees and Charges

18 December 2003 / 15 August 2003

Hong Kong Exchanges and Clearing

 

 

 

 

Lunch meeting with Paul Chow

29 October 2003

Presentation on proposed consultation paper on the reduction of tick size

10 December 2003

Opening ceremony in the first trading day of Chinese New Year

26 January 2004

Briefing on Proposed way forward on scriptless

25 March 2004

Exchange traded funds market making arrangement

16 April 2004

Financial Services and the Treasury Bureau

 

Briefing on Capital Investment Entrant Scheme

26 September 2003

Delegation to visit Beijing to discuss arrangement on recognition of professional qualifications under CEPA

16 - 18 February 2004

Henry Wu

Lunch meeting with officials of 中聯辦, representative from HKEx and other associations in the industry namely Hong Kong Stockbrokers Association, Hong Kong Securities Professionals Association and Institute of Securities

10 May 2004

Consultation Papers Responded

Organization
Topic

Action Taken
Month

Securities and Futures Commission

 

 

 

A Consultation Paper on the Securities and Futures (Contracts Limits and Reportable Positions) (Amendment) rules 2003 and proposed amendments to the Guidance Note on Position Limits and Large Open Position Reporting Requirements

Reviewed

October 2003

Consultation Paper on the Draft Guidelines on Good Disclosure of Securities Services Related Fees and Charges

Submitted comments

October 2003

Review of the Operation of Part XV of the Securities and Futures Ordinance

Submitted views

February 2004

Consultation Paper on the Regulatory Framework for Addressing Analyst Conflict of Interest

Reviewed

April 2004

Financial Services and the Treasury Bureau

 

Consultation Paper on Proposals to Enhance the Regulation of Listing

Submitted comments

December 2003

Consultation Paper on Exemption of Offshore Funds from Profits Tax

Reviewed

January 2004

Hong Kong Exchanges and Clearing

Consultation Paper on a Proposed Operational Model for a Scriptless Securities Market

Submitted comments

December 2003

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