Compatibility urged over legal complexity
Maintaining compatibility with other financial centres is more important than gaining statutory backing for the code of conduct in Hong Kong's financial market, according to the newly formed Treasury Markets Forum.
Speaking after the first meeting of the 20-member body, chairman Norman Chan said turning the existing code of conduct into legislation would hamper the normal functioning of the treasury markets.
'It could have a damaging effect on Hong Kong's competitiveness as an international financial centre,' said Mr Chan, who is also deputy chief executive of the Hong Kong Monetary Authority. 'How can you work smoothly if you have to look in the law books and check if you're breaking any regulation every time you do a trade?
'The most important things we need to do is review our code of conduct and guidelines regularly and make sure that there is no major difference to those in places like New York or Tokyo.'
The body, which replaced the Foreign Exchange and Money Market Practices Committee, is comprised of bankers and treasury market specialists from various financial institutions in Hong Kong.
The body has vowed to raise the standard of local treasury market professionals and the financial industry.
'Our ultimate goal will be that when banks hire treasury staff, they will always consider candidates who are members of the body first because of the high standard of conduct and professional qualifications it represents,' Mr Chan said.
