HKEx's conclusions are presented in a report that summarises the main comments submitted during the consultation process and the rationale behind its conclusions. The report should be read in conjunction with the consultation paper, which was posted on the HKEx website in August last year.
In view of respondents' broad support for the Phase 1 proposal in the consultation paper - reducing minimum trading spreads for shares with a price above $30 - HKEx's Board of Directors decided in December last year to go ahead with the Phase 1 proposal, subject to the approval of the Securities and Futures Commission (SFC).
The Phase 2 proposals (Options A and B) will not be implemented automatically after Phase 1. They are subject to further review of market experience and HKEx's study of the impact of the Phase 1 changes.
HKEx is seeking opinions from market participants on matters related to Phase 1 implementation, including proposed changes in trading parameters, market-making obligations for Pilot Programme securities and Exchange Traded Funds and minimum trading spreads for equity warrants and structured products, which include derivative warrants and equity linked instruments.
Subject to the approval of the necessary rule changes by the SFC, Phase 1 and related matters are expected to be implemented by mid-year. HKEx will inform market participants of the implementation details as soon as they are available. Market participants will be given sufficient lead-time to prepare for any changes related to the implementation of Phase 1 and related matters.
The current minimum trading spreads along with the new spreads approved by the HKEx Board and subject to the approval of the SFC are attached. Also attached are HKEx website links for the conclusions and submissions on minimum spreads and related documents.
Approved Changes in Minimum Trading Spreads for Shares
|
Price from ($) |
Current Minimum Spread |
Approved New Minimum Spread |
|
0.01 |
0.001 |
No Change |
|
0.25 |
0.005 |
No Change |
|
0.50 |
0.010 |
No Change |
|
2.00 |
0.025 |
No Change |
|
5.00 |
0.050 |
No Change |
|
30.00 |
0.100 |
0.050 |
|
50.00 |
0.250 | |
|
100.00 |
0.500 |
0.100 |
|
200.00 |
1.000 |
0.200 |
|
500.00 |
0.500 | |
|
1,000.00 |
2.500 |
1.000 |
|
2,000.00 |
2.000 | |
|
5,000.00 to 9,995.00 |
5.000 |
The consultation conclusions are posted on the HKEx website at:
http://www.hkex.com.hk/consul/conclusion/consultcon.htm
Respondents' submissions are posted at:
http://www.hkex.com.hk/consul/response/responses1.htm
The consultation paper is posted at:
http://www.hkex.com.hk/consul/paper/24010607(e).pdf
The questionnaire on proposed changes in trading parameters and other settings is posted at:
