2 September 2003

Dear Sir / Madam,

Survey of Foreign Exchange and Derivatives Market Activity 2004

You may recall that your institution participated in 2001 in the triennial survey of foreign exchange and derivatives market activity co-ordinated by the Bank for International Settlements. It is intended that Hong Kong will again participate in the next survey, in 2004. As you will be aware, the survey findings provide both authorities and market participants with useful information on developments in the foreign exchange and derivatives markets, including the "world ranking" of different markets.

I am writing to seek your participation again in the above survey. The survey consists of two parts: (i) collection of foreign exchange and derivatives turnover data for April 2004; and (ii) collection of derivatives outstanding data as at end-June 2004.

Please find enclosed the draft report forms and completion instructions for information and early preparation for the reporting. Changes and further clarifications, as compared with the 2001 survey, are indicated with revision marks. A final version of the report forms, completion instructions and submission details will be sent to you closer to the date of the survey.

Thank you in advance for your co-operation for the survey.

Yours faithfully,

Simon Topping
Executive Director (Banking Policy)