Asifma Block Trade Agreement Hong Kong
The Asia Securities Industry and Financial Markets Association (ASIFMA) recently announced that it has reached an agreement with the Hong Kong Securities and Futures Commission (SFC) to standardize the conduct of block trades in Hong Kong`s equity market.
This agreement aims to improve the transparency and efficiency of block trades, which are large trades of securities that are typically executed outside of public markets. Block trades are of significant importance to institutional investors who need to buy or sell large amounts of securities quickly.
The ASIFMA-SFC agreement establishes guidelines for the conduct of block trades in Hong Kong, including the disclosure of trade information to relevant parties, such as regulators and market participants, and the provision of a more systematic and transparent process for the execution and settlement of these trades.
The agreement also sets out specific guidelines on the use of electronic platforms for the execution of block trades, including the requirement for market participants to have access to electronic trading systems that meet specified criteria, such as low latency, robustness, and security.
According to Mark Austen, CEO of ASIFMA, “By standardizing the conduct of block trades in Hong Kong, this agreement will promote greater efficiency and transparency in this important segment of the equity market. We are pleased to work with the SFC in this important initiative, which will benefit market participants and help Hong Kong maintain its position as a leading financial center.”
The agreement is part of ASIFMA`s ongoing efforts to promote best practices in the securities industry and to enhance the competitiveness of Hong Kong`s financial markets. The organization has previously worked with regulators and market participants in other Asian markets, such as Japan and Singapore, to develop similar guidelines for the conduct of block trades.
In conclusion, the ASIFMA-SFC block trade agreement is a positive development for the Hong Kong equity market. By establishing standardized guidelines for the conduct of block trades, the agreement promotes greater transparency and efficiency in this important segment of the market, benefiting both institutional investors and the broader financial community.
