Hong Kong Exchanges and Clearing has released information about its new trading and market data platforms, part of continued efforts by the exchange to boost competitiveness.
The improvement to HKEx's current platforms is part of a three-year strategic plan devised by the exchange in March 2010 to prepare it for the evolving trading landscape and help it attract more business from mainland China.
The upgrades to AMS/3.8, the exchange's matching engine, and MDS/3.8, its market data platform, are scheduled for completion by the end of 2011
AMS/3.8 will reduce the latency of HKEx's trading platform to nine milliseconds, 16 times faster than currently and increase processing capacity tenfold to 30,000 orders per second. The order book will also double the best price level displayed to 10.
The new market data platform will allow for 2,000 stock page updates per second from 1,000 currently. To enable a smooth transition for members, HKEx will disseminate market data at both message rates in the first year following the upgrade.
Following the implementation of the new market data platform, HKEx plans to introduce new real-time market data feed products, to enable it to meet the growing demand for deeper and faster market data.
“The AMS/3.8 and MDS/3.8 upgrades will play a crucial role in maintaining the competitive edge of Hong Kong's securities market and helping us capture new growth opportunities,” said Charles Li, chief executive of HKEx.
Proposed regulatory changes have raised concerns that limits to competition between trading venues in Hong Kong may become more restrictive in the future.