THE Securities and Futures Commission (SFC) is planning a new round of talks in the long-running stock futures saga, after the Government was rapped by legislative councillors yesterday.
In response to the Legislative Council's reprimand for the lack of prior consultation, the SFC said it would initiate talks with the two exchanges and clearing houses and amend relevant rules.
A motion moved by legislator Chim Pui-chung, which won majority support, stated that it was 'grossly inappropriate for the Government to introduce the trading of stock futures contracts without consulting fully all sectors concerned and assessing critically its merits and demerits'.
Despite lengthy clarification by Financial Services Secretary Michael Cartland that it was the exchanges, not the Government, which introduced new products, legislators remained unconvinced.
'If the product meets statutory requirements, then everything else is left entirely to the exchanges,' he said, adding that the Government preferred minimal intervention in the market.
The motion won 33 votes, with only six members against.
