The Stock Exchange of Hong Kong is due to complete the migration from Tops, its stock options trading system, to the Hong Kong Futures Automated Trading System (HKATS) on August 6 2001.
The migration, which is known as the Derivatives Trading Integration project, involves the 46 options exchange participants trading on the exchange. The completion date was set after tests and rehearsals and has been approved by the Securities and Futures Commission.
The project has been masterminded by Hong Kong Exchanges and Clearing Limited (HKex) and is the first step in the integration of the derivatives market infrastructure. The second step will be integrating futures and options into the new Derivatives Clearing and Settlement System, DCASS. HKEx aims to complete the integration of derivatives clearing in 2002.
Kwong Ki-chi, HKEx chief executive, says: "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."
Contingency plans are in place in the event of a disruption in stock options trading using HKATS. Stock options will be traded on Tops if trading on HKATS is disrupted in the first two weeks after migration. The Tops contingency arrangements will continue to apply to the clearing and settlement of stock options trades before and after the migration.