HKFE Board Votes to Plan Migration of HIS Futures & Options in 2000

The Hong Kong Futures Exchange (HKFE) said today that its Board of Directors has voted to plan the migration of Hang Seng Index (HSI) Futures and Options from open outcry trading to the Exchange's HKATS electronic trading system for next year. When the plan is completed, the migration timetable will be forwarded to the Securities and Futures Commission (SFC) for its approval. "We have made a prudent decision that is in the best interests of the Exchange, our Members and Hong Kong," Acting Chairman Dr. Bill Kwok said. "We are committed to electronic trading and HKATS, and we look forward to a successful migration next year. "Today's decision allows us to further enhance the functionality of the existing system and to continue ongoing discussions with Members to ensure that migration merits support from all parties involved," Dr. Kwok explained. "HKATS is our Members' system and we want to make sure it meets Members' requirements", said William D. Grossman, Acting Chief Executive. "HKATS helps firms handling institutional business, and it helps retail firms that increasingly will be receiving orders through the Internet and other electronic means. Toward this end, the Exchange is working to ensure the long-term success of HKATS." Mr. Grossman added, "At the same time, migration early in 2000 would not impede the Exchange's objective to be at the forefront of the international trend toward electronic trading in light of the global freeze on software changes in the fourth quarter of 1999. "The Board has decided to appoint an external project manager for the migration process," Mr. Grossman said. "And the process will remain completely open and transparent." Dr. Kwok added, "We would like to thank Members for their dedication and support over the last several months. They have worked countless hours and many Saturdays on the migration project." The Exchange will issue a Members' Circular on the Board's decision early next week. The Hong Kong Futures Exchange is a leading futures and options market place in the Asia Pacific Region, with a membership of over 130 companies, including a number of major international institutions. The Exchange is actively diversifying its product base, which now includes currency, interest rate and equity-based products.