THE Securities and Futures Commission has been accused of over-reacting in its attempts to regulate leveraged foreign exchange and threatening the future of the industry.
The remarks were made by the industry's only representative body, the Hongkong Monetary Institutions Association, which has nine members from an estimated 200 forex firms.
Three areas have been identified by the association as requiring further definition or to be re-considered.
''We think the capital requirement of $30 million can be excessive, unless it is clearly defined,'' association chairman Steve Huang said.
He said it needed to be clarified whether that figure was paid-up capital or equity, or should be in the form of a bank deposit.
''The definition means a lot of difference to the forex firms,'' he said. ''It can mean in or out of the game.