The Securities & Futures Commission has decided to  take forward the Six-Point Plan proposed in the November 2005 Report on the Derivative Warrants Market in Hong Kong with some modifications and refinements.

The specific proposals under the Six-Point Plan aim to strengthen and enhance Hong Kong's derivative warrants market.

Twenty-seven submissions from 29 respondents were received. Responses were generally supportive of the Six-Point Plan and of maintaining a derivative warrants market in Hong Kong.

The specific proposals were also generally well received, though some attracted opposing views.

SFC Chairman Martin Wheatley said a few proposals had triggered strong and varied views, and the commission had proposed modifications or refinements to address the concerns raised.

Many of the proposals would require changes to the Listing Rules and hence approval of the Listing Committee, he said, adding it would work with the Exchange to achieve this within the shortest possible timeframe.

"We believe that these changes will, over time, increase investors' awareness of the risks and features of derivative warrants, and contribute to the development of a healthy market where informed investors may participate with confidence," Mr Wheatley said.