Number of Hongkongers dealing at home on the rise as global platforms enter the market
The number of online foreign-exchange traders operating in Hong Kong has increased with newcomers such as international houses Refco Group and E*Trade entering the market, breathing new life into an industry that has been marking time.
From the highs of 1995 when there were 50 firms operating leverage foreign-exchange trading, the number of players fell to an all-time low of 10 in 2001 but inched up to 11 as of March last year, according to the Securities and Futures Commission, which started to regulate these firms only in 1995.
The SFC's new rules on adequate capital and lending restrictions - compounded by a sluggish foreign-exchange-trading market - forced many firms out of business. Recent signs, however, show the industry may be recovering.
There are now 16 firms operating, with the latest five coming on the scene only in the past year, enticed by the volatile foreign-exchange market.
One of the newcomers is Refco of the United States, which operates in 14 countries including the US, Singapore and in Europe.
The company offers an internet platform for Hong Kong investors to trade 17 foreign currencies on their home computers.
