SEHK eyes new trading rules to make market more competitive

(Jan 9): Hong Kong Exchanges & Clearing is considering rule changes aimed at increasing trading, according to Chief Executive Officer Charles Li.

Rebates to market makers, simplified rules for using collateral across multiple positions, and the removal or reduction of stamp duty charges are among measures being considered, Li said in an interview. Some of the changes will require approval from the securities regulator or government, he said.

The exchange operator is eyeing changes as it battles for business with its international rivals. HKEX plans to allow so-called innovative companies with dual-class share structures as part of a slew of measures that could see the biggest changes to its listing rules since 1993. It has also set up three trading links with mainland China, with more in the pipeline, and in November introduced iron ore futures, in a head-on challenge to Singapore Exchange Ltd.

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