HKEx OTC Trades

The Blocktrader widget supports entering the following OTC trades on HKEX:

• T1: Internal Trade — Orders where a Buy-side participant and an Ask-side participant are set within the same order. Both sides of the order are then submitted as a cross order.
• T2: Combo (Internal Strategy) — A single order with multiple instrument legs. However, a user-defined strategy is not created at the exchange.
• T4: Interbank 1-Sided 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.

Blocktrader display for HKEX Interbank 1-Sided and Internal trades

Blocktrader consists of the following components for submitting Interbank 1-Sided and Internal trades on HKEX.

The image shows the following:

1. Exchange selector — Lists exchanges with OTC/Wholesale trades supported on TT®
2. Trade Type selector — Lists the OTC/Wholesale trade types supported for the selected exchange.
3. Account selector — Sets the account used for submitting the trade for both the Buyer and Seller. The account or clearing account "override" in Setup is sent to the exchange API as ex_client_s.
4. Price — Used for entering a price for the transaction. You can also use the up and down arrows to set the price.
5. Quantity — Used for entering the Buy or Sell quantity of the trade. You can also use the up and down arrows to set the quantity.
6. Price off tick — When checked, allows you to enter an off tick for instruments that support tick sizes smaller than what is displayed.
7. Use text for counterparty — Allows counterpartys to be entered as text instead of selected from the dropdown list defined in Setup.
8. Instrument search — Allows you to search for and select the instrument being traded. The best Bid and Ask price are displayed for the selected instrument.

   NOTE: Only "Future" and "Option" product types are supported for OTC trades at HKEX. OTC trades submitted for "Spread" and "Strategy" products will be rejected by the exchange.

9. HKEX OTC fields — Allows you to complete the fields required by the exchange. Fields are displayed based on the trade type.
10. Confirm Order and Submit — Allows you to confirm the order before submitting. When Confirm Order is checked, clicking Confirm allows you to check the details of the trade before clicking Submit.
11. Message indicator — Indicates if the trade was successfully sent to the exchange. Also shows if the order needs to be confirmed before submitting.

Blocktrader display for HKEX Internal Strategy trades

Blocktrader consists of the following components for submitting Internal Strategy (combination) trades on HKEx.

The image shows the following:

1. Exchange selector — Lists exchanges with OTC/Wholesale trades supported on TT®
2. Trade Type selector — Lists the OTC/Wholesale trade types supported for the selected exchange.
3. Account selector — Sets the account used for submitting the trade for both the Buyer and Seller. The account is sent to the exchange API as ex_client_s.
4. Price — Enter the price of a single instrument transaction. You can also use the up and down arrows to set the price.
5. Price off tick — When checked, allows you to enter an off tick price per leg for instruments that support tick sizes smaller than what is displayed.
6. Templates — Allows you to select a strategy template to configure and submit multi-leg strategy transactions. Click to save your custom strategy as a template.
7. Leg definition grid and instrument picker — The instrument picker allows you to search for and select the instrument being traded. The grid allows you to set a price and quantity for each leg. For multi-leg strategies, the grid displays the net sum of the best Bid and Ask prices for each leg. Click "+" to add a leg or X" to remove a leg as needed.

   NOTE: Only "Future" and "Option" product types are supported for OTC trades at HKEX. OTC trades submitted for "Spread" and "Strategy" products will be rejected by the exchange.

8. HKEx OTC fields — Allows you to complete the fields required by the exchange. Fields are displayed based on the trade type.
9. Confirm Order and Submit — Allows you to confirm the order before submitting. When Confirm Order is checked, clicking confirm will allow the user to check the details of the trade before clicking Submit.
10. Message indicator — Indicates if the trade was successfully sent to the exchange. Also shows if the order needs to be confirmed before submitting.

Submitting HKEX Interbank 1-Sided and Internal Orders in Blocktrader

Interbank 1-Sided trades are only executed after both traders submit a matching order. The exchange checks the following to match an Interbank Trade:

• Both orders must match the same series, price, and quantity.
• One order must be a "Buy" and the other a "Sell".
• Each participant must set the other participant as its counterparty.

Note: Prior to submitting an OTC trade, you should know the counterparty’s Participant Code. For Interbank trades, you must verify that the counterparty enters a matching Interbank order.

To submit an HKEX Interbank 1-Sided or Internal Order in Blocktrader:

1. Select HKEX from the Exchange selector.
2. Search for and select the instrument being traded.

   

   Note: Only "Future" and "Option" product types are supported for OTC trades at HKEX. OTC trades submitted for "Spread" and "Strategy" products will be rejected by the exchange.

3. Select either Interbank 1-Sided or Internal in the Trade Type selector.
4. Set the price and quantity for the trade.
5. Complete the common fields for Interbank and Internal trades.

   Note: For an Internal trade, populate credentials for both the Buyer and Seller sides of the trade.

6. Click the Submit button.

   If Confirm order is checked, confirm the order before submitting it to the exchange.

Submitting HKEX Internal Strategy Trades in Blocktrader

Note: For a list of supported strategies on the exchange, refer to HKEX Tailor Made Combinations.

To submit HKEX Internal Strategy Trades in Blocktrader:

1. Select HKEX from the Exchange selector.
2. Select Internal Strategy in the Trade Type selector.
3. Use the instrument picker to search for and select an instrument for each leg of the strategy.

   

   Note: Only "Future" and "Option" product types are supported for OTC trades at HKEX. OTC trades submitted for "Spread" and "Strategy" products will be rejected by the exchange.

4. Select a quantity and price for each leg of the strategy.

   Blocktrader shows the net price differential for the legs of the strategy.

5. Complete the common fields for Internal Strategy trades.

   Note: For an Internal trade, populate credentials for both the Buyer and Seller sides of the trade.

6. Click the Submit button.

   If Confirm order is checked, confirm the order before submitting it to the exchange.

Common Fields for HKEX Interbank 1-Sided, Internal, and Internal Strategy trades

Associating Legs to a Strategy

Traders can use Text B to combine the legs of a trade that belong to a single strategy. This allows a trader to accumulate enough volume to meet the minimum quantities for a block trade.

• Matching or Corresponding Fields — indicate legs that belong to the same strategy
• Unmatched Fields — are not associated with the strategy

Matching works the same way for both Internal Trades and Interbank 1-Sided Trades. First, any leg with a 'Buy'-side tag in the Text B field is a candidate for matching with other legs that have the same tag in the 'Sell'-side. If they match, the second leg's 'Buy'-side must also match the first leg's 'Sell'-side. This correspondence between two legs allows for three successful combinations of Text B fields:

• All buy and sell side Text B tags are the same
• A tagged buy-side matches a tagged sell-side, the other Text B fields are blank
• A tagged buy-side matches a tagged sell-side, the other fields are not blank, but match each other

Examples

Below are examples of legs matched using Text B.