HKEx

HKEx

HKEx overview

Hong Kong Exchanges and Clearing Limited (HKEx) is a leading global operator of exchanges and clearing houses based in Hong Kong and one of the world’s largest exchange groups by market capitalization. HKEx operates the securities and derivatives markets and their related clearing houses and is the regulator of listed companies in Hong Kong. To increase competitiveness and meet the challenges of a global market, the Stock Exchange of Hong Kong Limited (SEHK) and Hong Kong Futures Exchange Limited (HKFE), together with Hong Kong Securities Clearing Company Limited (HKSCC), merged under a single holding company, HKEx.

Matching Algorithm

The algorithm for ranking and matching orders received is based firstly on the best price (i.e., highest bid and lowest ask have the highest priority), and secondly on the time the order is received in HKATS. Quotes from Market Makers are also subject to the same ranking, matching, and pricing methodologies. The HKEx matching engine is located in Hong Kong.

Available Products

TT supports all futures and options products available for trading through the HKEx Derivatives Trading System (HKATS).

For a complete list of products, refer to the HKEx website.

For the latest list of products available for the T+1 (After Hours Trading) session refer to After-Hours Futures Trading.

Supported Exchange Functionality

TT supports the following HKEx functionality:

  • Aggregate and Detailed market depth
  • Tailor-Made Combinations
  • Trade Report Combo (Wholesale)
  • Give Up handling
  • Inactivated order handling
  • Fill and order recovery
  • RFQ
  • Indicative price/quantity during Pre-Open prior to an Auction
  • Exchange-provided implied prices
  • Market making functionality: Quoting and Mass Quoting

Unsupported Exchange Functionality

The following HKEx functionality is not supported:

  • Wholesale orders:
    • Interbank Trade: Orders that are only posted to the Participant listed as the order’s counterparty. Interbank trades are only executed after the counterparty submits a matching order.
    • Internal Trade: Orders where the bid-side Participant and an ask-side Participant are set within the same order message. Both sides of the order are then execute as a cross order.
  • Open interest
  • Post-trade processing
  • At Auction, Enhanced Limit, and Special Limit orders

Trading states

The following table shows HKEx trading states on TT:

Trading State and Session Description
Pre-Open - T Session (day or afternoon) Includes open allocation, pre-open, and pre-open allocation market states.
Open - All (T, T + 1) Includes markets tradable in the T and T + 1 sessions, markets enabled with price limit control, and markets enabled with dynamic price banding.
Close - All (T, T + 1) In this state, all markets are closed.
Freeze - T Session (day or afternoon) All markets are paused for trading.
Freeze - T + 1 Due to Trading Halt Mechanism, trading is halted for the following Equity Index Options products:
  • Hang Seng Index Options (HSI)
  • Hang Seng China Enterprise Index Options (HHI)
  • Mini-Hang Seng Index Options (MHI)

Trading Hours

HKEx offers different trading hours for their securities and derivatives markets. Trading hours for derivatives vary by contract. The table below shows the earliest start and latest end times for the T and T+1 derivatives trading sessions.

Session

Hours (HK time)

T Session (Day and Afternoon)

8:30 AM—5:00 PM

T + 1 Session (Night)

5:00 PM—11:45 PM (1 AM for mini-LME products)

T + 1 Session (Night) Equity Index Futures and Options

5:15 PM—1:00 AM

Notes The trading hours are subject to change at any time. For the most current information, please contact the Exchange or visit their website for trading hours.

Trading Halt Mechanism

TT supports the exchange's Trading Halt Mechanism (THM) for the following Equity Index Options products.

  • Hang Seng Index Options (HSI)
  • Hang Seng China Enterprise Index Options (HHI)
  • Mini-Hang Seng Index Options (MHI)

The THM occurs at the exchange when the highest bid of the corresponding futures contract is a THM percentage above its upper price limit, or when the lowest ask is a THM percentage below the futures contract's lower price limit.

If a THM occurs, trading of the impacted Equity Index Options contract will be suspended for the remaining T+1 session, and will resume at the beginning of the following T session. The TT Status column in X_TRADER will display Freeze to indicate trading in the Equity Index Options products is suspended due to the exchange THM.

During the Freeze state, orders for the suspended Equity Options Index contract remain at the exchange, but will not be matched. For the suspended orders, users can can change the following:

  • Order quantity
  • Text fields
  • TIF order restriction

Connectivity options

The TT® platform supports connectivity to the exchange, so you do not have to contact the exchange regarding connectivity options.