And Tsang proposed that Tung be authorized, when the public interest was under threat, to direct not only the Securities and Futures Commission, the government's market watchdog, but also the stock and futures exchanges and the stock clearing corporation, which are ostensibly private-sector bodies.
Instead of finding a lender of shares, they have their broker just run up an electronic tab, so to speak, on the books of a stock-clearing corporation.
In recent months, hedge fund critics have raised the issues of aggressive short-selling, hedge fund collusion with research analysts to manipulate a stock to their benefit, and short-sellers who skirt rules on stock settlement and clearing to make profits.
It owns 10% of the Oslo Stock Exchange, and 60 other exchanges, depositories and clearing organizations, including the Nordic Exchange, an umbrella term used to describe the stock exchanges of Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga and Vilnius.
Another positive sign it that manufacturers are continuing to clear the backlog of stock which built up as the slowdown hit, clearing the way for new production.
Euronext, a continental stock exchange that offers central counterparty and netting services via its clearing house, Clearnet, says it is happy to discuss partnerships with other European clearing houses to find a pan-European solution.
The stock and futures exchanges, and yet another independent entity, the clearing house, will all become one.
The UK's competition regulator has given the London Stock Exchange Group the go-ahead for its planned takeover of clearing house LCH Clearnet.
In other words, he is leaning towards the German model of a vertical silo in which a stock exchange oversees not just the trading of securities, but their clearing and settlement as well.
The London Stock Exchange is to buy a 60% stake in LCH Clearnet, the European clearing house, but for a lower price.
"We're pleased they're going to repropose" amendments, says Susan Milligan, senior vice president of government relations for Options Clearing, the clearing house for the major options exchanges, including the Chicago Board Options Exchange, American Stock Exchange, Boston Options Exchange and International Securities Exchange.
Once the bond offering is successfully sold to QIB's through the holding and clearing companies in New York and Europe, the bond will be officially listed on a foreign stock exchange (in this case, the Hang Seng).
Bats would save millions each year by clearing its own trades rather than sending them to other market centers, including the all-electronic National Stock Exchange in Chicago.
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