HKFE Seeks Exchange Participants' Comments On Proposal To Remove Fixed Minimum Commissions

The Hong Kong Futures Exchange (HKFE) is seeking Exchange Participants' comments on a proposal to remove fixed minimum commissions on all contracts traded on the Exchange effective 1 April 2002. This is consistent with the Budget Speech of Financial Secretary Donald Tsang today, which calls for the reduction of the rate of stamp duty and brokerage commissions to help maintain the competitiveness of Hong Kong in the global financial marketplace. Current HKFE rules require Participants to charge minimum commissions on Hang Seng Index Futures and Options contracts, Red-Chip Futures and Options contracts and stock futures contracts. Commissions on all other contracts traded on the Exchange are freely negotiable. "The proposal is consistent with the approach adopted by other major international derivatives exchanges and would enhance our ability to compete globally," Chief Executive Ivers Riley said. Exchange Participants have been asked to comment on or before 10 April 2000. Their comments will then be consolidated and submitted to the Hong Kong Exchanges and Clearing Board for consideration.