DISCIPLINARY proceedings are being considered against two stock exchange floor traders in relation to alleged activities which disadvantaged clients. The Stock Exchange of Hong Kong last night said it had banned Wong Kam-lee and Law Sui-hoi, both employed by Arthur Cheng Kin-yun of Chi Hing Company, from the trading floor. They also have been banned from the trading hall. The trading ban was enforced yesterday under section 39 of the Securities and Futures Commission (SFC) Ordinance after an investigation suggested they had disadvantaged clients. 'The investigation uncovered evidence which strongly suggests that these floor traders had taken over trades which should have been allocated to clients for themselves, through the use of a nominee account maintained with Chi Hing Company, thereby disadvantaging those clients,' the exchange said. 'The prohibition is aimed at removing them back to the offices of their employer so that they could be adequately supervised pending a review of their fitness and properness to remain registered with the SFC under the Securities Ordinance.' The pair have 30 days to appeal. 'The circumstances of this case involved the absence of adequate internal control systems,' the exchange said. 'This case highlights the need for brokers to maintain effective internal controls. 'Internal control guidelines are currently being developed and will be the subject of consultation in the first quarter of 1996.'