Amendments to the Securities and Futures (Levy) Order and the Securities and Futures (Investor Compensation – Levy) Rules (Statutory Rules) came into effect on 12 July 2008 to facilitate the launch of new exchange-traded products with market-making facilities and to promote participation in the futures market.

A new approach of granting levy exemptions to holders of valid securities market maker permits issued by the SEHK will replace the current practice of granting the SFC levy and investor compensation levy exemptions to market makers of defined products, namely Nasdaq-Amex Pilot Programme securities and Exchange Traded Funds.

On or after 12 July 2008, all holders of valid securities market making permits of the SEHK will be exempted from the payment of the SFC levy and investor compensation levy for their market making transactions on the SEHK.