Small and medium-sized brokers have enough time and support to get themselves ready, officials said on Tuesday, as the financial market is set to remain in operation under severe weather conditions from September 23. The securities and derivatives markets, including northbound and southbound trading, will continue operating during severe weather conditions, while banks and securities dealers will provide electronic services but shut down their physical outlets, Hong Kong Exchanges and Clearing (HKEx) noted. Brokers are required to set up a remote office and adopt digital trading by the implementation date. For those failing to meet the requirements, they can assign a small number of staff to return to their workplaces in times of typhoons and heavy rain, in accordance with the Code of Practice issued by the Labour Department. Secretary for Financial Services and the Treasury Christopher Hui said there’s a “holistic package” of support for brokers, especially smaller-sized firms, to put arrangements for remote working in place. “Technically we have the solutions ready in the market and the HKEx has already set out in the consultation document conclusions that they will provide necessary support in order to connect the potential service providers to the participants if they are needed,” he said. “Incentives are being given to the participants to upgrade themselves because for those that cannot do that before the end of September, if they need more time, we will support them through shouldering the relevant clearing responsibilities. At the same time, the regulators will pragmatically deal with their relevant compliance issues if they cannot during that period move everything online." The financial services chief said people can draw on the experience of remote working during the pandemic. “Working from home or using technology or online, whatever systems are available to do all the arrangements, it's not something new to the market, and especially during Covid times when already certain members of our financial community are already doing that,” he said. “So what we are proposing here is not drastic change but rather incremental change which is contingent on experience that we get before.” He added that tests will be conducted in August to check market readiness, but noting that the official implementation will not be delayed.
