Financial Services Development Council proposes diversifying listed structured products in Hong Kong
It also suggests reviewing the Stock Exchange's naming conventions.
The Financial Services Development Council has proposed expanding the market for listed structured products in Hong Kong.
In a report, the council recommended diversifying available products by including non-leveraged and held-to-maturity products on the Hong Kong Stock Exchange.
Council Chairman Laura Cha said Hong Kong's listed structured products market has had some of the highest trading volumes in the world.
"To optimise Hong Kong's listed structure products, we recommend the expansion of types of listed structured product to include some product categories that are currently available in the European markets, drawing on experience in those markets."
The report also suggests reviewing the Stock Exchange's naming conventions for stock short names, procuring a shorter timeframe and streamlined process to launch a new listed structured product, as well as providing investor education for new types of structured products.
Click here for the report.