Hong Kong Exchanges and Clearing (HKEx) has laid out its intentions for upcoming market microstructure improvements. The plans were set out in tandem with the exchange’s announcement of its 2013 results.
HKEx CEO Charles Li said that the exchange has completed consultation on the trading halt (a hiatus in trading that is similar, but not identical to a circuit breaker) , that it is exploring a best approach and model for mutual market access with China and currently expects a Q 2014 launch of the mainland market data hub, with five information vendors already signed up.
In accomplishments for 2013, he highlighted the introduction of after-hours futures trading of mini HSI futures, mini H share futures and block trade facilities. That activity has passed its six month review and now accounts for 4% of the day session’s volume.
The launch of client clearing services will take place after regulatory approval during 2014. The OTC Clear launch also saw Hong Kong’s OTC Clearing and Settlement System platform rolled out, with 12 founding shareholders of which four are clearing members. European Market Infrastructure Regulation recognition was applied for in January 2014.
HKEx’s platform infrastructure capability, was strengthened in 2013, when in October, derivatives trading and clearing systems were migrated to Genium INET. The Orion market data platform Phase 1, launched for the cash market in September 2013, will be extended to the derivatives market in the first half of 2014.