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Exclusive | Hong Kong markets watchdog to vet JPMorgan banker Nicolas Aguzin before greenlighting him as HKEX’s next CEO, source says

  • The SFC will review the candidate to check if he is a “fit and proper” person to run the exchange
  • The markets watchdog has not set an end date for the background checks

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Stock Exchange of Hong Kong (HKEX) signage in Beijing. Photo: Reuters
Enoch YiuandAlison Tudor-Ackroyd

Hong Kong’s Securities and Futures Commission (SFC) will conduct background checks on JPMorgan Chase & Co banker Nicolas Aguzin before deciding whether to approve his appointment as chief executive of the world’s most valuable bourse operator, according to a person familiar with the deliberations.

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The SFC’s 14-member board of directors met on Wednesday to discuss Hong Kong Exchanges and Clearing Limited’s (HKEX) choice for their next leader and decided to tell the city’s government it would conduct due diligence on Aguzin, the person familiar said.

The SFC will review the candidate to check if he is a “fit and proper” person to run the exchange, including his work experience and background. During the unscheduled meeting, the regulator did not set an end date for the background checks.

HKEX named Argentinian national Aguzin as its next CEO on Tuesday, the first non-ethnic Chinese to step into the role, underscoring the bourse’s ambition to be an international financial hub even as Beijing’s influence spreads across the city. As CEO of the city’s bourse, Aguzin will need to carefully balance the exchange’s desire to expand globally and attract overseas companies to list in Hong Kong with policy directions emanating from Beijing.
Nicolas Aguzin looks to take the helm at the HKEX. Photo: Reuters
Nicolas Aguzin looks to take the helm at the HKEX. Photo: Reuters
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The announcement by the HKEX, before securing the SFC’s approval is unusual. HKEX announced Li’s appointment on June 3, 2009, and said at the time that the SFC had approved its choice in writing. According to section 70 of Hong Kong‘s Securities and Futures Ordinance, HKEX’s nomination of a CEO requires the SFC’s approval in writing.

The exchange initially planned to announce Aguzin’s appointment after winning the SFC approval, but it released the news earlier than expected after Bloomberg and the South China Morning Post reported his move, according to another person familiar with the process.

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