The migration involves 46 Options Exchange Participants of the Stock Exchange of Hong Kong, a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx). These Options Exchange Participants will continue to be the only Exchange Participants permitted to conduct stock options business.
The migration date was set after the successful completion of a series of tests and rehearsals, and it has been approved by the Securities and Futures Commission.
As a prudent measure, HKEx has developed contingency plans in the event of a disruption in stock options trading on HKATS. Under the plans, stock options would be traded on TOPS if their trading on HKATS were to be disrupted in the first two weeks after migration. After the two-week period, the HKATS contingency arrangements will apply to stock options trading in the event of a disruption. The TOPS contingency arrangements will continue to apply to the clearing and settlement of stock options trades before and after the migration.
Derivatives Trading Integration is the first step in the integration of the derivatives market infrastructure. The second step will be the integration of futures and options clearing on the new Derivatives Clearing and Settlement System, or DCASS. HKEx aims to complete derivatives clearing integration in 2002.
"The migration of stock options trading to HKATS will create an integrated market structure for the trading of HKEx's wide range of futures and options, increase operational efficiency and reduce operating costs," said Kwong Ki-chi, HKEx chief executive. "Derivatives Trading Integration, the Third Generation Automatic Order Matching and Execution System and our planned clearing system upgrade demonstrate our commitment to investing in technology to strengthen our markets."
