IT governance is an improving course and has become an important issue in the information technology area. IT governance refers to the organizational capacity exercised by the executive management and IT management to control the formulation and implementation of IT strategy. It ensures the sustainability of IT and the fusion of business and IT. Ever since the application of information technology in securities industry, IT governance and its future development have been the fundamental issue of the industry.
Hong Kong has the world’s tenth largest security market and the second largest in Asia after Tokyo. Over the last decade, Hong Kong has achieved significant growth in securities market. As one of the most important international
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Later in 1996, the second generation of the Automatic Order Matching and Execution System was introduced, becoming the foundation of off-floor trading. Four years later, the third generation of AMS was implemented by HKEx. This generation has provided a more efficient and reliable approach to serve the operations of the securities market. Due to the continuously increasing trading and transaction volume, electronic order handling system has been developed. Electronic trading system in financial market supports trading of securities with the help of Internet. It allows member firms to transmit orders directly to the exchanges without intervention by the floor brokers.
IT industry indeed has become a vital resource. However, the effective control and management of IT resources is still a serious problem. Recalling the two consecutive technical failures happened in Tokyo Stock Exchange in 2005 which results in hundreds of millions of dollars loss in economy, Hong Kong should increase the awareness of the importance of IT governance. Corporates should devise an effective strategy to deal with IT governance in Hong Kong securities industry. In addition, currently, Hong Kong government has issued a Baseline IT Security Policy and a series of guidelines related to IT security. However, they all focus on the protection of Government information systems. There are no