Legislators want probe over delay

PUBLISHED : Tuesday, 02 November, 1999, 12:00am
UPDATED : Tuesday, 02 November, 1999, 12:00am

Legislators have urged the Government to investigate the delay by the futures exchange in shifting Hang Seng Index (HSI) futures and options to electronic trade.

'The Government should check if the board of directors of the futures exchange has failed to supervise the executives to carry out the migration plan as scheduled,' legislator Cheung Man-kwong said yesterday in a Legislative Council meeting.

Legislator Fung Chi-kin agreed, saying the Government should find out who was responsible for causing electronic trading to be delayed until next year.

The futures exchange had planned for the HSI futures and options to begin electronic trading on August 2.

At the Legco meeting, Principal Assistant Secretary for Financial Services Bryan Chan Ping-keung said the board of the futures exchange was trying to push ahead with the shift of HSI futures options from open outcry.

He said the board had hired an independent consultant to review problems with the Hong Kong Automated Trading System (HKATS) which had caused the delay.

The exchange has also sought help from the systems' provider.

'The priority of the futures exchange is to shift the Hang Seng Index futures and options to trade electronically in the first quarter next year,' Mr Chan said.

From June to September, the exchange carried out nine rounds of trading tests with HKATS.

Eight of those tests yielded poor results.