The Hong Kong Futures Exchange yesterday slapped a temporary ban on operations by futures broker C.A. Pacific Futures.
The broker, a firm with a sizeable client list, had been suspended from trading until it provided the exchange with more proof of its financial soundness, exchange chief executive Ivers Riley said.
He denied market speculation that the firm had experienced difficulties meeting margin requirements.
He said it had stopped trading yesterday and that its floor trader had been removed from the market because the exchange was not allowing the firm to carry any trading positions.
The ban was temporary and that the exchange had not suspended the firm's membership.
Mr Riley said the exchange felt 'uncomfortable' about the firm's situation when the market opened yesterday but would not elaborate further.
'We just want to make sure no problems occur and the firm will need to give us more evidence to show its soundness,' he said.
