Hong Kong Exchanges & Clearing Ltd. · HKEX:388
Hong Kong Exchanges & Clearing — Reduction of Minimum Spreads Webinar (January 2025)
7 slides from Hong Kong Exchanges & Clearing's conference presentation, Jan 14, 2025
Slide 1: Consultation Conclusions - Proposed Reduction of Minimum Spreads in the Hong Kong Securities Market
Consultation Conclusions - Proposed Reduction of Minimum Spreads in the Hong Kong Securities Market Trading, Operations 14 Jan 2025
Slide 2: Agenda
Agenda 01 | Consultation Proposal and the Conclusions 02 | Associated Changes 03 | Quotation Rules : Examples of Allowable Price Limit 04 | Implementation Timeline
Slide 3: Consultation Proposal and the Conclusions
01 | Consultation Proposal and the Conclusions (Reference: Consultation Conclusions Ch.1) • Feedback summary: 110 responses received, 70% support on Phase 1, 64% support on Phase 21. • Scope: Equities, REITs, equity warrants and all other securities except ETPs, debt securities, Exchange Traded Opti
Slide 4: Associated Changes
02 | Associated Changes (Reference: Consultation Conclusions Ch.2) 2. Market Making Obligations 1. Quotation Rules 3. Stock Settlement Fees (Single Stock Options) • Replace with a fee based on • For all securities except ETPs • Temporary adjustment notional value traded. Removed the floor and ceilin
Slide 5: Quotation Rules: Examples of Allowable Price Limit
03 | Quotation Rules : Examples of Allowable Price Limit Example 1: Example 2: Lower Price Limit – Limit BUY Order Upper Price Limit – Limit SELL Order Current Best Bid = $19.89 & Current Best Ask = $19.90 Current Best Bid = $0.495 & Current Best Ask = $0.50 Best Bid: $19.89 Best Ask: $0.50 Lower li
Slide 6: Implementation Timeline
04 | Implementation Timeline End to End Test Market Rehearsal (Mandatory for EPs) Post Release Test Test material ready Late 2025 - 2025 Q2 2025 Q3 Mid-2026 Early 2026 Phase 1 rollout Associated changes Observation period (6 months) Phase 2 rollout* * If no undesirable impact observed during the obs
Slide 7: 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
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