Exchanges and Clearing (HKEx) is gearing up its technology offerings in a bid
to fuel future growth through improved data capacity, lower latency and
enhanced market data platforms across all asset classes.
Orion, the US$380 million technology improvement programme includes the already
announced construction of a new data centre in Hong Kong's Tseung Kwan O
industrial estate and ambitions to deliver the highest capacity hosting
services of any exchange in Asia-Pacific.
addition, Julian Ragless, senior vice president and co-head of platform
development and strategy at HKEx, said the bourse would deliver new
infrastructure and platforms to provide greater connectivity and market data
across all asset classes.
is not a single project but a progressive series of projects that will bring
incremental value to clients," Ragless told theTRADEnews.com, explaining
HKEx was developing a suite of market data products, remote distribution hubs – beginning with Mainland China – and additional functionality through a FIX interface.
said the exchange was increasing its capacity to support options market
expansion, as well as increased derivatives clearing performance and throughput
capacity with faster response times for daily operational processing.
chief executive Charles Li said a core component of Orion was improving latency
at the exchange, with hosting services providing low-latency access to HKEx
platforms and an upgrade to its SDNet core trading and data network. But Li
said while he expected high frequency trading (HFT) firms to make use of the
new facilities, HFT traders were not the exchange's primary target for the
is important in the US because there are four exchanges where firms can
arbitrage but not be engaged in investment. Hong Kong has one exchange. We are
not making these changes to get HFT customers," said Li. "We are not
competing for speed – we aim to be fast but not the
fastest. You don't just build freeways for Ferraris."
end of Q2, HKEx plans to have delivered improved securities trading and market
data in the form of the upgrade to SDNet. Hosting services are scheduled to
come online in Q4 with the completion of the new data centre. New market data
services will be rolled out in 2013, with other platforms to follow.
to technology – including a recent upgrade to
the bourse’s core matching platform – are a core facet of HKEx’s three-year plan, initiated
in March 2010. The plan is designed to foster greater links between HKEx and
China in light of the ongoing project to internationalise the renminbi. The
exchange has also embarked on a revamp of its clearing risk management procedures after admitting earlier this month that may not currently be able to
cope with the default of a major participant.
HKEx has also announced the first 22 firms that have been designated as founding members of its hosting services ecosystem ahead of its launch in Q4 this year. The firms include Credit Suisse, BT, Thomson Reuters, Clearstream, Fixnetix and RTS Realtime Systems, and each set up their service offerings ahead of the launch.
"By working together with these organisations, HKEx is creating a unique ecosystem that will ultimately lower trading costs while enhancing communications and electronic trade lifecycle capabilities of the marketplace," said Ryan Wuebbels, head of relationship management at HKEx.