SMALL stock brokers should develop their own market niche to compete with international and larger counterparts, says Securities and Futures Commission (SFC) chairman Anthony Neoh.
Mr Neoh said the internationalisation of the Hong Kong stock exchange had been detrimental to some investors and intermediaries.
He was responding to persistent complaints from smaller brokers accusing their bigger counterparts of taking away business.
'It has been suggested that international investors are able to use their sheer size of capital to move the Hong Kong capital market to their advantage and, by implication, to the detriment of local retail investors,' he said.
He said the introduction of international standard meant new ways of managing securities businesses and new skills were needed.
He said brokers would have to invest in information technology and staff training, and hire more skilled staff.
'To be successful, intermediaries must be able to quickly devise and execute trading strategies straddling the cash, futures and options markets,' he said.
