The principal Listing Rules in relation to derivative warrants are set out in Chapter 15A, Appendix 6A and Practice Note 14 to the Listing Rules. It has been the practice of the Exchange to continually review these rules to ensure that they continue to be relevant and appropriate in the context of developments in the derivative warrant market. As part of that review process, the Exchange has published a consultation paper seeking views on proposals to foster the further development of the market.
The principal proposals set out in the consultation paper are:
- to remove the requirements to place derivative warrants to a minimum number of placees before the listing of such warrants;
- to increase the limit on the percentage of an issue which may be held by the issuer at the time a derivative warrant issue is launched;
- to introduce a market making requirement for derivative warrants;
- to provide greater flexibility in relation to the listing of Further Issues of derivative warrants; and
- to simplify the contents of listing documents in relation to derivative warrants.
Copies of the consultation paper are available from the office of the Exchange and from the website at www.hkex.com.hk.
Comments on the consultation paper should be received by the Exchange no later than 30 June 2001.
