Thursday December 17 2015

News Source: Global Exchanges

Focus: General - Global Exchanges

Type: General




Hong Kong Exchanges and Clearing Limited (HKEx) plans to initiate or implement the following initiatives in the Securities Market in 2016.

Introduction of Circuit Breaker Mechanism by the Shanghai Stock Exchange (SSE)
The introduction of circuit breaker mechanism by Shanghai Stock Exchange starting from 2016 will have an effect on northbound trading of A shares through Shanghai-Hong Kong Stock Connect. The China Connect Open Gateway (CCOG) interface specifications have been updated and a practice session/post release test for China Connect Exchange Participants to participate will be conducted on 19 December 2015.

Provision of Implementation Details of China Connect Central Gateway (CCCG)
CCCG will be introduced to replace the existing CCOG for Stock Connect northbound trading. HKEx has already started the design and development of the new system, and will announce the implementation details to the market in due course.

The implementation schedule and technical specifications are expected to be published in 1H 2016. The system is tentatively scheduled to roll out in 2H 2016. There will be a transition period after the roll out for China Connect Exchange Participants to pace their migration from CCOG to CCCG.

Open Gateway (OG) Retirement in Hong Kong Securities Market
Following the launch of Orion Central Gateway (OCG) in June 2014, OCG is replacing the existing OG and the migration is conducted by phases. OG for the Hong Kong Securities Market is scheduled to retire in June 2016.

Most EPs have migrated their OGs to OCGs. For EPs still using OG for the Hong Kong Securities Market, they are reminded to migrate to OCG as soon as practicable. Eps not planning to migrate to OCG have been notified individually to de-install their OGs.

Introduction of Phase 1 of Closing Auction Session (CAS) in Hong Kong Securities Market
The CAS will be rolled out in two phases. CAS Phase 1 will be rolled out in Q3 2016 while CAS Phase 2 will be rolled out after a review, tentatively six months after Phase 1. CAS Phase 1 will include all the Hang Seng Composite LargeCap and MidCap index constituent stocks, the H shares which have corresponding A shares listed on the exchanges in Mainland China, and all ETFs.

Technical documents have been released in August 2015. EPs are required to verify the compatibility of their Broker Supplied Systems (BSS) with the CAS. EPs have to perform necessary system modification (if applicable) before participating in the market rehearsals.

Details of the market rehearsals will be provided in Q2 2016.

Introduction of Volatility Control Mechanism (VCM) in Hong Kong Securities Market
The VCM will cover Hang Seng Index (HSI) and Hang Seng China Enterprise Index (HSCEI) constituent stocks in the Securities Market, and 8 index futures contracts in the two indices in the Derivatives Market.

Technical documents have been released in August 2015. EPs are required to verify the compatibility of their BSS with the VCM. EPs have to perform necessary system modification (if applicable) before participating in the market rehearsals.

Details of the market rehearsals will be provided in Q2 2016.

For Derivatives Market, VCM will be introduced in Q4 2016 tentatively.

Provision of Information on the Scope of Enhancements and Implementation Schedule of Orion Trading Platform – Securities Market (OTP-C)
OTP-C is the new trading platform to replace the current AMS/3.8 trading platform for securities trading in Hong Kong. HKEx has already started the design and development of the new system, and will announce the implementation details to the market in due course.

OTP-C is primarily a technology upgrade developed with modern technology to pave way for future business growth. The “Trading Halt” Mechanism that HKEx has decided to implement will also be introduced in this new trading platform. The implementation schedule and technical specifications are expected to be published in Q3 2016. The system is tentatively scheduled to be rolled out in end 2017.

Click on the link above for further details.