As execution-only traders look for opportunities to maximise profits, liquidity is an essential element of the equation. We have managed to find detailed data going back to the beginning of 2002, showing not only the level of the Hang Seng index but also monthly trading volumes. Considering that the index started the period at 11,368 and is currently 20,170 (up 77%), what would you expect to have happened with trading volumes?
Over the last few days, we have seen much mention, discussion and analysis of Hong Kong since sovereignty was returned to the People’s Republic of China. While there are various opinions, it pays to look at the statistics and the financials of this 25-year era. So, where does Hong Kong stand today compared to 25 years ago?
While initially, governments around the world ignored cryptocurrencies/digital currencies, they have still shown massive growth in popularity. Bitcoin has been the headline act, leading the way as the rest follow. While Singapore has always been interested in digital currencies, the recent announcement by the Monetary Authority of Singapore (MAS) could lead to monumental changes.
A recent report by Visa has cast a fascinating light on the potential for a cashless society in the short to medium-term. The Hong Kong report looked at both payment methods available at the moment (and going forward) and the actions of consumers. While many people believe that governments worldwide are pushing consumers into a cashless society, it looks as though consumers are making up their own minds!
For the first time in three years, the Vietnamese government was able to attend the Joint Economic and Trade Committee meeting with their UK counterparts. This is the latest move to expand trade between Vietnam and the UK. At this moment in time, Vietnam is the UK’s 35th largest trading partner, currently worth around £5.5 billion a year.
As a company based in Hong Kong, offering investment services, we are authorised and regulated by the Securities and Futures Commission (SFC). This is not to be confused with UK regulator the FCA or its US counterpart, the SEC. So how does the SFC work?
Primer brokers are expected to take the necessary steps to ensure that they always operate within a robust risk management framework. Trade execution and other prime brokerage services have to not only take place within the company’s own risk management programme, but they must also ensure they overlay with relevant regulatory requirements and operational needs.
In 2019, Hong Kong’s Securities and Future Commission (SFC) introduced new rules that impacted on how trade execution took place in the territory. The regulatory changes applied to online distribution and advisory platforms and, in effect, brought about the end of execution-only business in Hong Kong for everyone but large established banks.
A new regulatory framework from Hong Kongs Securities and Futures Commission will determine how licences for centralised virtual asset trading platforms are granted, placing a strong emphasis on protecting the virtual assets of investors. Any virtual asset exchange operator that wants to be licensed by the SFC will be required to meet all of the requirements for alternative trading systems and stockbrokers.
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