中文 CONTACT US

Chairman's Report (2011 - 2012) by Mr Oliver Ng

Date : 2012-09-27

I am pleased to present my report on The Hong Kong Association of Online Brokers Limited (“HKAOB”). Forthe period of 2011to2012, I represented BOCI Securities Limited and served as Chairman.

During theperiod, our industry had enduredsubstantial decline in business volume as the average daily turnover was HK$56.8 billion for the past 12 months versus HK$70.3 billion for the year of 2011 which represented a decline of 20%. The only bright spot for our members was that according to the Retail Investor Survey 2011 conducted by the Hong Kong Exchanges and Clearing Limited (HKEX), 68.7% of the retail stock trade were done via online channel.  In fact, the percentage of online stock traders had more than doubled since 2002. However, behind this favorable trend, Broker firms in general are facing intense competition from Banks since according to the same survey, 74% of the retail stock traders conducted trades solely through banks(up from70%in 2009)while 18% was done through Broker firms (down from 19% in 2009).

Despite the difficult and challenging environment, HKAOB and its members remained focus and vigilant to ensure the interest of local Broker firms and retail investors at large are not compromised. As such, HKAOB had stayed at the forefront on some of the contentious issues raised during the year, namely SFC’s consultation on the regulation of electronic trading and unhealthy cut-throat pricing strategy by certain Broker firms charging commission at less than HK$5 per trade. Since these contentious issues affect the industry as a whole, HKAOB had joined force with all 6 other securities associations, namely : Hong Kong Securities Association, The Institute of Securities Dealers, Chinese Securities Association, Hong Kong Securities Professional Association, Hong Kong Securities and Futures Professional Association and HK Institute of Financial Analysts and Professional Commentators to show our solidarity and to express our views and concerns to the SFC and to Mr. C Y Leung, HKSAR Chief Executive,

During the year, HKAOB had received huge support from our members. I would like to thank, in particular, Quote Power for revamping and hosting HKAOB’s new website and Infocast for hosting several dinner gatherings to showcase some innovative products for the securities industry. Most notably, members of HKAOB were unanimous in their support of our Vice Chairman, Mr. Vincent Lee, in his bid to become Legco Member for the Financial Service constituency. Finally and last but not least, I offer my deepest gratitude to all members for their guidance and advice throughout the year. 

During the period of 2011/2012, HKAOB conducted the following activities to fulfill the objectives of the Association:

 1.   Responded to various market consultations and discussions issued by HKEx, SFC and Financial Services and the Treasury Bureau.

      The most  significant ones include:

      a.   Consultation Paper on regulation of electronic trading

      b.   Guidelines on Financial Dispute Resolution

      c.   Creation of Financial Services Development Council

      d.   HKEx initiatives on Orion, a transformative program in market access, connectivity, speed and efficiency

      e.   HKEx Trading Halts proposal and changes to HKSCC Guarantee Fund

 

  2.   Participated in various meetings/functions held by market regulators and industry organizations, including:

      a.   Regular meetings with SFC and HKEx

      b.   Regular industry practitioners meetings organized by Hon Chim Pui Chung, Legislative Councilor

      c.   Monthly luncheon with 6 others securities associations

      d.   Hong Kong securities delegation visiting SGX and Society of RemisiersSingapore

      e.   Quorum 15, a forum for Global Buy-side and Sell-side firms

      f.    2012 Chinese New Year Cocktail

 

   3.   Other activities:

      a.   HKSAR Chief Executive Election – Forum and meeting with candidates: Mr. C Y Leung and Mr. Henry Tang

      b.   Legco Election for Member of the Financial Services constituency – Forum and meeting with the candidates

      c.   Jointly hosting dinner with The Association of Former Council Members of The Stock Exchange of Hong Kong Limited to celebrate Mr. C Y Leung as recipient of Grand Bauhinia Medal and Mr. Paul Fan as recipient of Silver Bauhinia Star

 

Back in 2002, HKAOB was instrumental in convincing the SFC to introduce guidance note on non-face to face account opening, which facilitated the growth of the online industry. Looking forward, HKAOB will continue to strive, together with other market participants, to promote further development of Online Trading as technology has become more advanced and matured. In closing, I would like to express my deepest gratitude to all of our members for their unwavering support and dedication in contributing to the success of HKAOB.

 

 

Oliver Ng

Chairman

 

September 27, 2012

 

Back to Chairman Report

 

Powered by
QPI logo
Sitemap