The newly formed TMF takes on a much broader mandate in that it focuses not only on the foreign exchange and money markets, but also the debt, derivatives and other treasury markets. With rapid financial innovations and rising demand from customers for a one-stop service, the dividing line between the traditional treasury and trading functions of a bank with other types of financial market services has become rather blurred. In other words, the treasury departments now encompass a wider variety of functions that cut across different markets, notably forex, money, debt and derivative markets. The formation of the TMF, with representatives from the HKCMA and other industry associations, offers great synergy in helping enhance the competitiveness of Hong Kong’s treasury markets, thereby contributing to Hong Kong’s position as the premier international financial centre in the region. In carrying out its work, the TMF focuses on the “3 P’s”. That is: “People”, “Product” and “Profile”. Let me explain further. Firstly, “people”. As with other service industries, financial services are a “people business”. The competitive edge of a financial centre depends largely on the availability of a large pool of highly professional market practitioners. A priority area for the TMF is therefore to work with the industry to enhance the professionalism of practitioners in the treasury markets. As you may be aware, with the support of the TMF, the Financial Markets Association of Hong Kong (ACIHK) has recently launched a new membership regime, together with a revamped professional training and accreditation programme.
In the past year, the TMF also called on the financial regulatory bodies and financial institutions in Beijing and participated in a Financial Services Expo in Shanghai to promote the treasury markets in Hong Kong. In addition to the Mainland, the TMF maintains close contact with our overseas counterparts in the major financial centres, such as the foreign exchange committees in London and New York. The TMF will continue to arrange regular meetings and visits with our overseas counterparts to keep abreast of global developments and to exchange views on matters of mutual interest. Ladies and gentlemen, in less than a year since its establishment, the TMF, with the support from the industry and market practitioners, has made very impressive progress in its work. Looking ahead, with the numerous and valuable opportunities offered by the gradual opening up of the Mainland markets, it is up to all of us to try our best to seize such opportunities to ensure that Hong Kong will remain the hub for financial services and intermediation for Mainland China and the rest of the region. Thank you. 2  BIS Review 6/2005