2011-01-19 17:37

HONG KONG - Hong Kong Securities and Futures Commission Chairman Eddy Fong said Tuesday that Hong Kong's over- the-counter (OTC) derivative issue was making good progress, with a consultation paper to be published soon.

Speaking at the fourth Asian Financial Forum being held in Hong Kong, Fong shared his thoughts of Hong Kong's financial regulatory changes.

He said a consultation paper regarding Hong Kong's OTC derivative issue would come out very soon, in line with related G20 regime.

When asked of Hong Kong's dark pool situation, Fong said Hong Kong and a number of other Asian economies enjoyed a fairly limited influences from it.

A dark pool (or dark pool of liquidity) is a private electronic transaction network, typically maintained by major banks and securities companies.

The matching of buyer and seller is not published to exchanges, done entirely within the bank's control. It ranged from completely opaque to semi-transparent, the more transparent the liquidity pool, the easier it is to be managed.

According to Fong, trade generated from dark pool accounted for just 3 percent to 4 percent of Hong Kong's equity market trade volume, and the city's securities watchdog would focus on the transparency of dark pool particularly.