SFC to keep watch on Net trading

PUBLISHED : Thursday, 08 July, 1999, 12:00am
UPDATED : Thursday, 08 July, 1999, 12:00am

The Securities and Futures Commission plans to monitor local brokerages that provide Internet-trading services, according to Acting Secretary for Financial Services Rebecca Lai Ko Wing-yee.

The SFC would require a high level of system integrity and security by these brokers, Mrs Lai said in a written reply yesterday to legislator Cheung Man-kwong.

It would also require brokers offering Internet services to have qualified personnel and resources.

However, Mrs Lai said the SFC had not received any complaints from investors relating to Internet trade.

She said the SFC issued a guidance note to brokers in March that provided guidelines for Internet trading.

'The SFC will need to ensure that businesses which provide or intend to provide securities-dealing services over the Internet have in place the necessary, additional operational safeguards and risk disclosure,' Mrs Lai said.

At the end of May, 16 brokers used - or had proposed to use - the internet for securities-dealing activities, she said.

Of this group, 12 were members of the stock exchange that focused on local shares, while the others were registered companies involved mainly in overseas trading.

The stock exchange also has rules governing the behaviour of its members that provide Internet services.