Exchange spurs US, Canada alliances

PUBLISHED : Saturday, 16 June, 2001, 12:00am
UPDATED : Saturday, 16 June, 2001, 12:00am

Hong Kong Exchanges and Clearing is planning to speed up proposals to forge alliances with stock exchanges in New York and Canada.

A year ago the Hong Kong exchange said it planned to link up with nine others in a partnership known as the Global Equity Market.

The partnership will include exchanges in Sydney, Tokyo, Paris, Amsterdam and Brussels as well as the two in North America, and aims to allow investors to trade stocks around-the-clock.

Yesterday Hong Kong Exchanges and Clearing said that while waiting for agreement on the broader alliance, it would discuss an earlier tie-up with the New York and Toronto exchanges.

On the futures side, it confirmed it was in discussion with the Sydney Futures Exchange to build links to develop a new range of products and trading co-operation between the two.

The SAR exchange said it was planning to launch more new products to diversify its range, including futures based on the Dow Jones industrial index and fixed income Exchange Traded Funds.

The new products under consideration include:

Dow Jones Industrial Average Index futures and options (new futures based on the United States index); listing of equity linked notes (a combination of a bank's deposit and equity investment products); derivatives on the government Exchange Fund Notes; fixed income Exchange Traded Funds; introduction of more regional Exchange Traded Funds.

In another planned project, the exchange said that it also plans to grant an exemption on the short selling regulation and to integrate the trading platform of futures and options products.