HKEx Plans To Add A Price Control Mechanism To Its Closing Auction Session On 22 June

Further to its news release on 13 February this year, Hong Kong Exchanges and Clearing Limited (HKEx) announced today (Thursday) plans to implement a percentage-based price control mechanism in the Closing Auction Session (CAS) for its securities market on 22 June this year, subject to the approval of the necessary rule amendments by the Securities and Futures Commission ( SFC) and market readiness.

As outlined in the consultation conclusions published on 13 February this year, the mechanism sets a price limit of 2 per cent of nominal prices at 4 pm. Under the mechanism, any orders with prices outside the price limit will be rejected by the securities market's trading system.

The following is the planned implementation schedule adopted by HKEx after it took into account feedback from Exchange Participants, information vendors and other market participants on the time required for system changes.

	Task	Target Completion D at e
1.	Issue a circular and technical notes to all Exchange Participants, and del iv er a separate notice and the transmission specification to inform at ion vendors	5 March
2.	Conduct briefing sessions for Exchange Participants and inform at ion vendors	End of March
3.	Submit rule amendment for SFC approval	Mid-April
4.	Complete end-to-end testing by Exchange Participants	Mid-May
5.	Conduct two rounds of market rehearsals	30 May and 6 June
6.	Conduct post release test	20 June
7.	Implement the price control mechanism	22 June

HKEx will update Exchange Participants and information vendors on the implementation plan and schedule for briefing sessions through separate circulars.