Our Ref. : B10/1C
22 August 2007
The Chief Executive
All authorized institutions
Dear Sir/Madam,
Treasury Markets Activities
In order to ensure that treasury markets activities in Hong Kong (e.g. the trading of foreign currencies, securities, derivatives and other instruments) continue to flourish and to be conducted in a safe and sound manner, it is important that authorized institutions (AIs) should recognise the need for continuing enhancement of their capabilities in this area, in respect of both systems and controls and people.
In particular, it is important for AIs to ensure that their employees engaged in such activities, whether in the front or middle/back office, have the necessary professional knowledge and expertise to perform their duties and adhere to sound market practices and relevant market codes and standards. In this regard, it may be opportune to mention the role that the Treasury Markets Association (TMA) can play.
As you will probably recall, the TMA, the industry association representing a wide range of institutions and practitioners involved in various treasury markets in Hong Kong, was established in January 2006 by institutionalising the previous Treasury Markets Forum of Hong Kong and merging it with the ACI-The Financial Markets Association of Hong Kong. One of the TMA's missions is to promote the professionalism of the treasury markets in Hong Kong through -
The above initiatives taken by the TMA fit well with some of our supervisory expectations on AIs engaging in treasury market activities. AIs may therefore wish to -
Yours faithfully,
William A. Ryback
Deputy Chief Executive