Nasdaq signs deal to upgrade HKEX derivatives market

Nasdaq expects to complete its upgrade of HKEX's derivatives market by mid 2018.

Nasdaq has signed an agreement to upgrade the Hong Kong Exchange and Clearing (HKEX) derivatives trading and clearing technology.

Under the agreement, Nasdaq will deliver its multi-asset trading technology and derivatives clearing engine, as well as a real-time risk management solution. The new derivatives platform will also addresses certain risk management and stress testing requirements for clearing houses and exchanges to uphold.

The agreement extends the technology partnership, which HKEX and Nasdaq have upheld since 1994, for an additional five years. The upgrade is expected to be completed in the second half of 2018.

“HKEX is one of the global capital markets’ true innovators who are committed to the continuous introduction of new technologies to bolster and strengthen the product and services offerings for their clients and partners, along with a rigorous focus on shaping the future of our industry,” said Lars Ottersgard, head of market technology, Nasdaq.

Nasdaq recently completed the rollout of its Genium INET solution for Singapore Exchange’s (SGX) derivatives business.

The agreement is significant for Nasdaq which has seen increasing competition in the clearing technology space in the region from Cinnober, which has agreed to provide the technology infrastructure to clearing houses in Australia, Dubai, Japan, and Thailand, as well as to HKEX’s London Metal Exchange (LME).