| Type | Futures exchange |
|---|---|
| Location | Central, Hong Kong |
| Owner | Hong Kong Exchanges and Clearing |
Hong Kong Futures Exchange (HKFE) is afutures exchange inHong Kong. Established in 1976, it offered a variety ofoptions andfutures contracts, linked tostock market indices,stocks, short-terminterest rates, andforeign exchange. HKFE is a subsidiary ofHong Kong Exchanges and Clearing Limited.
The HKFE went bankrupt in 1987 during theOctober 1987 global stock market crash whenSino Group chairmanRobert Ng, 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.[1] Trading was also halted on theHong Kong Stock Exchange for four days.[2] An investigation by the Commercial Crime Bureau of theRoyal Hong Kong Police revealed that Ng had avoided requiredmargin calls through collusion with one of his brokers.[1] 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.[3] 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.[2]
On 6 March 2000, a new parent companyHong Kong Exchanges and Clearing for the HKFE, the Stock Exchange of Hong Kong Limited, and Hong Kong Securities Clearing was formed.[clarification needed]
