Hong Kong Futures Exchange (HKFE) is a

futures exchange A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts defined by the exchange. Futures contracts are derivatives contracts to buy or sell specific quantities of a commodity or f ...

Hong Kong Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China ( abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delt ...

. Established in 1976, it offered a variety of options and

futures contract In finance, a futures contract (sometimes called a futures) is a standardized legal contract to buy or sell something at a predetermined price for delivery at a specified time in the future, between parties not yet known to each other. The asset ...

s, linked to

stock market indices In finance, a stock index, or stock market index, is an index that measures a stock market, or a subset of the stock market, that helps investors compare current stock price levels with past prices to calculate market performance. Two of the ...

stock In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which ownership of a company ...

s, short-term

interest rate An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, th ...

s, and

foreign exchange The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all as ...

. HKFE is a subsidiary of

Hong Kong Exchanges and Clearing Limited Hong Kong Exchanges and Clearing Limited (HKEX; , also 香港交易所 or 港交所 ) operates a range of equity, commodity, fixed income and currency markets through its wholly owned subsidiaries The Stock Exchange of Hong Kong Limited (SEHK ...

History

The HKFE went bankrupt in 1987 during the October 1987 global stock market crash when

Sino Group Established in 1971, Sino Group () comprises three listed companies – Sino Land Company Limited (HKSE: 083), Tsim Sha Tsui Properties Limited (HKSE: 0247), Sino Hotels (Holdings) Limited (HKSE: 1221) – and private companies held by the Ng Fa ...

chairman

Robert Ng Robert Ng Chee Siong (; born 1952) is a Singaporean billionaire businessman, and the chairman of Hong Kong property development conglomerate Sino Group since 1991.Simplified Chinese version anTraditional Chinese version He is the eldest son o ...

, who had been speculating in futures through two Panamanian-registered companies, suffered paper losses of HK$1 billion, but then refused to pay, claiming to be protected by the limited liability of the companies through which he had traded. Trading was also halted on the

Hong Kong Stock Exchange The Stock Exchange of Hong Kong (SEHK, also known as Hong Kong Stock Exchange) is a stock exchange based in Hong Kong. As of the end of 2020, it has 2,538 listed companies with a combined market capitalization of HK$47 trillion. It is repor ...

for four days. An investigation by the Commercial Crime Bureau of the

Royal Hong Kong Police The Hong Kong Police Force (HKPF) is the primary law enforcement, investigative agency, and largest disciplined service under the Security Bureau of Hong Kong. The Royal Hong Kong Police Force (RHKPF) reverted to its former name after the t ...

revealed that Ng had avoided required

margin call ''Margin Call'' is a 2011 American drama film written and directed by J. C. Chandor in his feature directorial debut. The principal story takes place over a 24-hour period at a large Wall Street investment bank during the initial stages of the ...

s through collusion with one of his brokers. However, in the end, no charges were laid against Ng because the colonial government of Hong Kong felt that prosecuting him would pose a risk to overall market stability. Instead, a deal was worked out which saw Ng repay HK$500 million, with Hong Kong taxpayers providing the rest of the funds needed by the Exchange through a government bailout. On 6 March 2000, a new parent company

Hong Kong Exchanges and Clearing Hong Kong Exchanges and Clearing Limited (HKEX; , also 香港交易所 or 港交所 ) operates a range of equity, commodity, fixed income and currency markets through its wholly owned subsidiaries The Stock Exchange of Hong Kong Limited (SEHK ...

for the HKFE, the Stock Exchange of Hong Kong Limited, and Hong Kong Securities Clearing was formed.

References

Notes

Sources

* Financial services companies established in 1976 Finance in Hong Kong 1976 establishments in Hong Kong Futures exchanges {{hongkong-stub

History

See also

References

Notes

Sources