Hong Kong Exchanges & Clearing Ltd. · HKEX:388
Hong Kong Exchanges & Clearing — Investor Presentation (September 2018)
30 slides from Hong Kong Exchanges & Clearing's investor presentation, September 2018
Slide 1: Market Data Vendor Seminar
September 2018 MARKET DATA VENDOR SEMINAR HKEX-IS
Slide 2: Disclaimer
DISCLAIMER The information contained in this presentation is for general informational purposes only and does not constitute an offer, solicitation, invitation or recommendation to subscribe for or purchase any securities or other products or to provide any investment advice of any kind. This presen
Slide 3: Agenda
AGENDA 1 Market Overview and Updates – Winnie Poon, Head of Market Data 2 Business Initiatives – Jin Qian, Data Licensing and Marketing 3 Upcoming Client Activities – Arthur Yung, Data Connectivity and Support 4 Payment Initiative and Audit Programme – Lianna Liu, Data Client Audit 5 Q&A 3
Slide 4: Structure Update
Structure Update Head of Market Data Winnie POON Data Client Audit Data Connectivity & Support Data Licensing & Marketing Lianna LIU Arthur YUNG Jin QIAN Reporting & Connectivity Audit Data Policy Licensing Billing Project & Management Support 4
Slide 5: Market Overview – Real-time Data Vendors
2018 Updates Market Overview – Real-time Data Vendors Mainland + Overseas Hong Kong 283 250 Mainland 232 69 (49%) 216 140 200 180 158 131 149 149 150 150 138 124 Overseas 133 71 (51%) 97 104 69 74 63 96 72 100 62 66 80 71 73 40 51 143 22 19 22 50 84 87 92 101 71 72 80 77 83 52 51 58 56 53 0 2004 200
Slide 6: Client Overview – Real Time Data Clients
Client Overview – Real Time Data Clients Market Data Vendor Market Data End-User By Region: Overseas 8 Mainland 69 Real-time End-Users Hong Kong Total: 413 Information Vendors USA 143 Total: 283 13 Europe 12 Hong Kong Asia 405 46 By Industry: Information business 72 Media 10 Exchange Participants 40
Slide 7: Market Data Business Updates
Market Data Business Updates OMD Subscription Status of Direct Connection Clients OMD-Cash OMD-Derivatives RTS RTS 36 20 - SF DS 47 52 D-Lite 56 SP 75 Total no. of Total no. of connections: 591 connections: 265 DP SS 78 433 DF 59 Securities Standard : SS (12 connections from MMDH) Derivatives Standa
Slide 8: Way Forward
Way Forward Mainland Market Data Hub (“MMDH”) • To consider enrich the content of MMDH and support market participants have direct access to our premium datafeeds via MMDH Historical Data Products • To promote HKEX historical data products through marketing programs and commercial packages Reference
Slide 9: Agenda
AGENDA 1 Market Overview and Updates – Winnie Poon, Head of Market Data 2 Business Initiatives – Jin Qian, Data Licensing and Marketing 3 Upcoming Client Activities – Arthur Yung, Data Connectivity and Support 4 Payment Initiative and Audit Programme – Lianna Liu, Data Client Audit 5 Q&A 9
Slide 10: 1.a Marketing Programmes for End Users & EPs
1.a Marketing Programmes for End Users & EPs OMD Free Trial Programme • To experience faster and deeper depth market data from OMD via direct connection with HKEX for market transparency • To promote the subscription of OMD Premium and FullTick datafeeds and historical full book products No. of Appl
Slide 11: 1.b Marketing Programmes for Information Vendors
1.b Marketing Programmes for Information Vendors Cash Derivatives Marketing Programme for Mobile Application Derivatives Market Data Distribution Service Partnership Programme One-year Fixed Fee Programme Marketing Programme for New Derivatives Products Fixed Fee Programme on 5 Depths Southbound Eli
Slide 12: 1.c Marketing Programmes – To be Expired
1.c Marketing Programmes – To be Expired Mainland Market Data Collaboration Programme • Collaboration among HKEX Information Services Ltd (HKEX-IS) and SSE Infonet Ltd (wholly-owned Shanghai Stock Exchange) and Shenzhen Securities Information Co., Ltd. (wholly-owned Shenzhen Stock Exchange) • Commen
Slide 13: 2. OMD D-LITE – Arrangement Update
2. OMD D-LITE – Arrangement Update D-Lite Details Purpose EPs’ internal data usage and redistribution, after NG decommissioning Allowed Data Sources Maximum 4 (direct & indirect combined) Fees One-off Connect Fee: HK$10,000 (waived) Monthly License Fee: HKD2,000 per applicable connection (waived unt
Slide 14: 3. Upcoming Events
3. Upcoming Events Details Information Day Annual Mainland Conference Date & Time Late October Late November Venue Connect Hall, Hong Kong Shanghai – venue TBC Topic Overview of market data business initiatives Latest development in the mainland market and latest development in the market and new bu
Slide 15: Agenda
AGENDA 1 Market Overview and Updates – Winnie Poon, Head of Market Data 2 Business Initiatives – Jin Qian, Data Licensing and Marketing 3 Upcoming Client Activities – Arthur Yung, Data Connectivity and Support 4 Payment Initiative and Audit Programme – Lianna Liu, Data Client Audit 5 Q&A 15
Slide 16: Upcoming System Activities
Upcoming System Activities Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 New indices inclusion (planning on commodity, sector and new Late-Oct (timeline in 2019 subject to indices availability) economy indices) OMD-C Mid-Oct: • Bandwidth Increase Post Release Test • Technical Refresh Nov/Dec: Mar/Apr: May
Slide 17: OMD-C (Bandwidth Upgrade)
OMD-C (Bandwidth Upgrade) Market data traffic is continuously increasing since Bandwidth increase OMD-C launches: (Mbps): 4 Message Count (10 mins after market open) 3.4 3.5 3.4 OMD-C Min Bandwidth 4 Number of Message=s (millions) Data Feed (Mbps) 3 2.7 Securities 3 Standard 10 16 2.1 > 2.5 ti
Slide 18: OMD-C (Technical Refresh)
OMD-C (Technical Refresh) Scope: 1. Hardware refreshment 2. OS upgrade 3. Software architecture revamp Impact: 1. Pure technology refreshment 2. No OMD-C interface change Timeline: Activity Timeline E2E environment upgrade November / December 2018 Market Rehearsals March – April 2019 Post Release Te
Slide 19: OMD-D (Changes for HKATS/DCASS Upgrade)
OMD-D (Changes for HKATS/DCASS Upgrade) Interface Changes: 1. Introduce new status in commodity and series: “Locked” 2. Introduce news fields for future usage (e.g., “DateTimeFirstTrading” in Series Definition) 3. Series Definition will be sent for all series (including suspended series) at the star
Slide 20: OMD-D (Technical Refresh)
OMD-D (Technical Refresh) Scope: 1. OS upgrade 2. Software architecture revamp Impact: 1. Pure technology refreshment 2. No OMD-D interface change Timeline: Activity Timeline E2E environment upgrade Q4 2019 Market Rehearsals Q4 / Q1 2020 Post Release Test Q1 2020 Note: Timelines above are based on p
Slide 21: Market Continuity
Market Continuity 2013 2014 2015 2016 2017 2018 2019 MDF Cash Market Market Data OG Provisioning OMD-C PRS Derivatives Market Market Data NG Provisioning OMD-D OMD is the only market data provisioning system in Cash Market. It will be the same in Derivatives Market after HKATS/DCASS Upgrade. To ensu
Slide 22: Agenda
AGENDA 1 Market Overview and Updates – Winnie Poon, Head of Market Data 2 Business Initiatives – Jin Qian, Data Licensing and Marketing 3 Upcoming Client Activities – Arthur Yung, Data Connectivity and Support 4 Payment Initiative and Audit Programme – Lianna Liu, Data Client Audit 5 Q&A 22
Slide 23: 2018 Initiative – Autopay Arrangement
2018 Initiative – Autopay Arrangement • Cost saving • Time saving Benefits • Payment on time • Reduced risk License & Subscriber Fees • Less administrative work • Pre-set payment date • Avoid overdue • Better record-keeping Operational Financial interests • Easy reconciliation efficiency impact • Re
Slide 24: 2018 Initiative – Autopay Arrangement
2018 Initiative – Autopay Arrangement End-Users s and Information Vendors Local Information Vendors Target Local End-Users Licensees Overseas licensees+ with bank account in Hong Kong Market Data Fees: Redistribution Fees Fees Connection Fees Subscriber / Individual user Fees (Note: Debi
Slide 25: 2018 Initiative – Autopay Arrangement: Complete & Submit
2018 Initiative – Autopay Arrangement COMPLETE & SUBMIT Direct Debit Authorisation Form (Download Link) To: HKEX Finance Division 23/F, One Exchange Square 8 Connaught Place Central, Hong Kong 25
Slide 26: New Bank Account for payments
New Bank Account for payments Payment Methods Autopay Direct Debit Bank Transfer • Current Hang Seng Bank as receiving bank will remain active until 31 Dec 2018 • Payments shall be deposited, transfer or wire to HSBC bank account New Beneficiary : HKEX-IS Name of Bank : HSBC Account No. : 004-741-05
Slide 27: 20 Free Display Terminal Units to EPs
20 Free Display Terminal Units to EPs Exchange Participants (EPs) can claim up to 20 free Cash & Derivatives market data display units HKEX-IS Securities market data Derivatives market data SEHK EPs HKFE EPs SEHK Stock Options Participant Claim 20 L1/L2 display units, via Effective Apr 2018 Effect
Slide 28: Data Audit and Compliance
Data Audit and Compliance Objectives: By Data Client Audit Covering Market To ensure Annual Inspection Data vendors and compliance and team and Engaged Programme End-User licensees market data fees are Auditors reported accurately 2018 Inspection Programme Take a chance to review your usage and re
Slide 29: Data Audit and Compliance: Key Reminders
Data Audit and Compliance Key Reminders Mainland Discount Programme / • Technical control for blocking access outside Mainland China (e.g. IP) Mobile Application Service • Restricted access to 11 regions for waived fees New Derivatives • Regions include: Mainland China, Japan, Korea, Singapore, Taiw
Slide 30: Questions and Answers
s») Questions and Answers HKEX G ié & & Fi
Hong Kong Exchanges and Clearing — Investor Presentation (September 2018) on 6ix