Regulatory Alerts2011-12-16
Added · Updated
Trading in the Exchange Fund Bills and Notes and Institutional Government Bonds Markets
The Hong Kong Monetary Authority issued this circular to remind Authorized Institutions of their obligation to maintain high professional standards in the Exchange Fund Bills and Notes and Institutional Government Bonds markets. The regulator explicitly prohibits round-tripping trades designed solely to artificially boost turnover figures and mandates that institutions review their internal controls to prevent such practices. The HKMA will continue monitoring these markets to ensure appointed market makers and primary dealers contribute genuinely to liquidity in accordance with their appointment terms.
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