Tsui role cut ahead of exit

PUBLISHED : Thursday, 13 April, 2000, 12:00am
UPDATED : Thursday, 13 April, 2000, 12:00am

Hong Kong Exchanges and Clearing chief operating officer Alec Tsui Yiu-wa will stop being involved in regulatory and listing matters three months before he steps down from his post on August 1.

'To avoid real or potential conflicts of interest prior to his departure, Mr Tsui will refrain involvement in individual securities regulation and listing cases,' the merged exchange said yesterday.

The announcement confirmed reports Mr Tsui had resigned only one month after the body was formally established.

It did not say why Mr Tsui had stepped down.

Mr Tsui yesterday declined to comment on his resignation or on his plans.

Many brokers had expected Mr Tsui - who had been chief executive of the stock exchange - to be named chief executive at Hong Kong Exchanges and Clearing instead of Kwong Ki-chi.

Mr Kwong had been secretary for information technology and broadcasting before he was appointed to head the merged exchange.

Yesterday, Mr Kwong declined to say whether Mr Tsui was asked to remain at his post.

But he said: 'We believe there will be no effect on the exchange's operation because of one man's leaving.' Mr Kwong said Mr Tsui's replacement would be hired through an open-recruitment process.

Staff would also be allowed to apply for the post, he said.

Several projects begun at the stock exchange under Mr Tsui's control have yet to be completed.

Among these are the launch of the exchange's third generation of automatic order matching system and a dual listing plan between the exchange and the Nasdaq market in the United States.

Meanwhile, Frederick Grede, chief executive of the futures exchange, yesterday said he was confident the exchange's Hong Kong Automated Trading System (HKATS) soon would begin trading Hang Seng Index futures and options despite repeated testing failures.

'The system is one of the best electronic-trading system in the world,' Mr Grede said.

He dismissed concerns by brokers that HKATS would have to be scrapped once the futures exchange linked up with the Chicago Board of Trade (CBOT) and Eurex to form a separate common trading platform.

'We will look at our strategy with respect to the [CBOT-Eurex] alliance without changing the system,' said Mr Grede.

Mr Grede formerly was a senior executive at the CBOT.