The Securities and Futures Commission ("SFC") published consultation conclusions on its proposed guidelines for market soundings on October 31, 2024. The
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On October 31, 2024, the Securities and Futures Commission ("SFC") published consultation conclusions on its proposed guidelines for market soundings (Note 1).
The guidelines set out principles and requirements for licensed or registered persons when they conduct market soundings, which are most commonly seen in block trades. These requirements include implementing protocols to protect confidential information entrusted during market soundings.
Respondents to the consultation supported the objectives of the proposals to uphold market integrity during market soundings. The SFC refined the scope of the guidelines, clarified some requirements, and incorporated respondents’ feedback. The consultation began on October 11, 2023, and ended on December 11, 2023. The SFC received 27 written submissions.
The guidelines will be gazetted on November 1, 2024, and become effective on May 2, 2025. Intermediaries have a transitional period of six months to comply with the guidelines. The SFC also provided practice guidance and examples to facilitate implementation.
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