Hong Kong Exchanges and Clearing Limited (HKEx) says it plans to extend block trading from its day trading session into after-hours futures trading at the exchange, subject to regulatory approval.
HKEx introduced after-hours futures trading on 8 April this year, when Hang Seng Index (HSI) and H-shares Index (HHI) futures became available for trading from 5pm to 11pm in addition to their regular daily trading sessions. HKEx says it may extend its hours to midnight when the US clocks change to standard time from daylight saving time.
In early 2014, HKEx also plans to offer after-hours trading of more futures contracts, beginning with mini-HSI, mini-HHI and renminbi currency futures.
HKEx has reviewed the first six months of after-hours futures trading at the exchange. The review found that there has been both retail and institutional investor participation.
After-hours trading volume versus day trading session volume rose from 2.2% in April to 5.4% in October. Almost half of volumes were carried out between 9:30pm and 11:00pm, when US markets were open.
Prices never altered more than 2.3% from the day trading session close, meaning that the +/-5% price limit, a risk management measure, was not hit. HKEx says that the current level of the price limit will be retained.
There were no problems with clearing and settlement and margin calls were completed smoothly.