Hong Kong Exchanges & Clearing Ltd. · HKEX:388
Hong Kong Exchanges & Clearing — Investor Presentation (August 2019)
65 slides from Hong Kong Exchanges & Clearing's investor presentation, Aug 7, 2019
Slide 1: Market Data Information Day
7 August 2019 MARKET DATA INFORMATION DAY Market Data Markets Division
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: Rundown
Rundown 4:30 pm – 4:45 pm Opening Remarks and Overview 4:45 pm – 4:50 pm HKEX-IS Key Marketing Programmes 4:50 pm – 5:10 pm HKEX-IS Customer-centric Market Data Compliance Programme 5:10 pm – 5:20 pm HKEX Hosting Services 5:20 pm – 5:35 pm Shanghai Stock Exchange Overseas Market Data Services By Chi
Slide 4: Agenda
AGENDA 1 Opening Remarks and Overview – Winnie Poon, Head of Market Data Key Marketing Programmes 2 – Jin Qian, Head of Data Licensing and Marketing, Market Data Customer-centric Market Data Compliance Programme 3 – Lianna Liu, Head of Data Client Audit, Market Data Hosting Services 4 – Andy Lee, He
Slide 5: Client Overview
Client Overview America Europe UK :7 Asia USA : 20 Switzerland : 2 Hong Kong : 619 Denmark : 1 Mainland China : 78 France: 1 South Korea : 19 Germany : 1 Singapore : 12 Sweden : 1 Japan : 9 Taiwan : 6 Australia : 4 Malaysia : 2 Macau : 2 No. of Information Vendors 424 No. of End Users 412 395 343 28
Slide 6: Client Overview (Real Time Data Clients)
Client Overview (Real Time Data Clients) • Vendors come from different industry segments • End-Users are mostly EPs Market Data Vendor Market Data End-User Overseas Mainland 9 78 USA Real-time IV 15 Hong End-Users Hong Europe Kong Kong Total: 360 12 415 Total: 424 204 Asia 51 By Region Information b
Slide 7: OMD Subscription Status of Direct Connection Clients
OMD Subscription Status of Direct Connection Clients OMD - Cash OMD - Derivatives 17% of the 29% of the RTS Connections RTS Connections SF 31 via HSN 27 DS via HSN 51 93 SP D-Lite 79 Total no. of Total no. of 126 Subscriptions Subscriptions 556 393 DP SS 81 395 DF 66 SS: Securities Standard (12 Conn
Slide 8: Stock Connect Related Initiatives
Stock Connect Related Initiatives Mil 100 OMD-China 14000 RT Mainland IVs Connect Feed 90 Southbound ADT 12000 80 SZ-HK Connect 78 10000 70 75 60 62 8000 50 57 SH-HK 6000 40 Connect 45 30 4000 20 22 2000 10 16 17 12 0 0 2011 2012 2013 2014 2015 2016 2017 2018 2019-Jul 2014 2015 2016 2017 • 1-depth D
Slide 9: Way Forward
Way Forward China Anchored Continue our promotion in Mainland marketing to support Stock Connect Technology Empowered Modernize our online distribution platform of data products & client interfacing service Globally Connected • Promote global access to our data products with internet and cloud techn
Slide 10: Agenda
AGENDA 1 Opening Remarks and Overview – Winnie Poon, Head of Market Data Key Marketing Programmes 2 – Jin Qian, Head of Data Licensing and Marketing, Market Data Customer-centric Market Data Compliance Programme 3 – Lianna Liu, Head of Data Client Audit, Market Data Hosting Services 4 – Andy Lee, He
Slide 11: Marketing Initiatives
Marketing Initiatives OMD Free Trial Programme Basic Market Price Service One-Year Fixed Fee Programme Daily Charge Service Programme Fixed Fee Programme on 5 Depths Cash of Southbound Eligible Stocks Enhanced Volume Discount Scheme Promotion Programme on Issuer Information Marketing Programme for M
Slide 12: Marketing Initiatives - OMD Free Trial Programme
Marketing Initiatives - OMD Free Trial Programme • Three months of free data • Corporate internal usage only • OMD Premium and FullTick datafeeds for both securities & derivatives markets • Direct connection OMD Real-time • Waived Licence Fee, Connection Fee, Subscriber Fee Datafeeds • ~ 90% convers
Slide 13: Historical Data Products
Historical Data Products A variety of historical and reference data available via online subscription Order Book Shanghai and Shenzhen Connect • Historical Full Book • Monthly / Daily Statistics • Trade File • Northbound Eligible Stock List • Trade Record Statistics • Month-end / Day-end Closing Dat
Slide 14: Policy Updates
Policy Updates The following policies are under review and updates will be provided in due course Basic Market Prices Service (2011): 53 participants Marketing Programme for New Derivatives Products (2013): 58 participants Marketing Programme for Mobile Application Service (2017): 61 participants 14
Slide 15: Reach Us at MarketData@hkex.com.hk
Reach Us at MarketData@hkex.com.hk
Slide 16: Agenda
AGENDA 1 Opening Remarks and Overview – Winnie Poon, Head of Market Data Key Marketing Programmes 2 – Jin Qian, Head of Data Licensing and Marketing, Market Data Customer-centric Market Data Compliance Programme 3 – Lianna Liu, Head of Data Client Audit, Market Data Hosting Services 4 – Andy Lee, He
Slide 17: Market Data Compliance
Market Data Compliance Admission Deposit and Reporting Upfront Payment Monthly reporting Payment Information of data usages Quarterly & Compliance Vendors (Charged and Monthly data fees waived) Regular & ad-hoc (Licence Fees inspections and Subscriber Fees by autopay) (By Market Data Department or a
Slide 18: Customer-centric Initiatives
Customer-centric Initiatives 2018 2019 Aug Dec Apr Sep Oct •Introduced Autopay • On-site Inspection Arrangement • Changed HSBC Bank • iSurvey to be Account for Payment introduced • Streamlined Quote Meter Audit Report submission From Data requirement …To Market Data Reporting and Compliance Payment…
Slide 19: Autopay Arrangement
Autopay Arrangement • Preset payment date • Preset payment date • Avoid duplicate or • Build good credit overpayment history Avoid Timely Penalty Licence Fees, Payment Connection Fees, Interest Subscriber/Individual User Fees Time Mitigate Invoice and Cost Risk Saving • Effortless payment • Better b
Slide 20: Quote Meter Audit Report Submission Requirement
Quote Meter Audit Report Submission Requirement Usage Based Service Applicable to Licensees providing Usage Based Services To certify the quote metering system recording fee-liable Per Quote Charge Per Unit access Access Time Effective April 2019, Report Submission requirements are streamlined t
Slide 21: Introduction of iSurvey
Introduction of iSurvey Objective: • Helps minimize risk for Licensees in a proactive and cost-effective way Communication: • Enhance communication on market data policies with Licensees Self-Declaration: • Immediate review and easy assessment of compliance level to avoid potential violation T
Slide 22: 2019 Market Data On-site Inspection
2019 Market Data On-site Inspection New Information Vendors & End-Users Existing Information Vendors Notification email & End-Users Inspection date By Data Client Audit Team/HKEX-IS appointed independent auditors will schedule a visit regarding: • Data permissioning, billing and reporting systems •
Slide 23: Friendly Reminders
Friendly Reminders Summary Report Fill in all the tabs in the Report (Summary, Detailed, Free Trial and Business Support Units) as applicable Report all entitled market data units (fee-liable or waived) with details (User ID, Name, Data Content, Subscriber Device, Date when market data was activ
Slide 24: Friendly Reminders
Friendly Reminders Specific Requirements under Marketing Programmes Restricted real-time L1/L2 Securities data access within Mainland Technical Control China for Mainland China Discount, Mobile Application Service, e.g. Subscriber Fixed Fee Service (5-depths, One-Year Fixed Fee) address/IP Technical
Slide 25: Friendly Reminders
Friendly Reminders Open Limit SIGN AND MAIL / DELIVER Authorisation Form (Download Link) To: HKEX Finance Division 23/F, One Exchange Square 8 Connaught Place Central, Hong Kong Same signature as your bank account signature 25
Slide 26: Reach Us at DataClientAudit@hkex.com.hk
Reach Us at DataClientAudit@hkex.com.hk
Slide 27: Agenda
AGENDA 1 Opening Remarks and Overview – Winnie Poon, Head of Market Data Key Marketing Programmes 2 – Jin Qian, Head of Data Licensing and Marketing, Market Data Customer-centric Market Data Compliance Programme 3 – Lianna Liu, Head of Data Client Audit, Market Data Hosting Services 4 – Andy Lee, He
Slide 28: The HKEX Data Centre
The HKEX Data Centre Total floor area of 31,400 square meters State-of-the-art purpose built facility, owned and operated by HKEX Designed to meet Tier 4 and LEED Gold Rating specifications Dual incoming utility power from separate substations Dual TBE rooms and risers to support Telco div
Slide 29: HKEX Hosting Services
HKEX Hosting Services Benefit to Users Highly resilient and secure data centre Low latency access to HKEX Securities and Derivative markets Low latency direct HKEX market data feeds Carrier neutral with broad telecommunications carrier access Interactive ecosystem environment supporting el
Slide 30: HKEX Hosting Services
HKEX Hosting Services Innovative Services Among the first exchange pioneering collaborative Hosting Services Ecosystem Low Latency Algorithmic Market Access Trading Real-Time Global Market Data News Feed Risk Management Analytics 30
Slide 31: HKEX Hosting Services: List of Ecosystem Members
HKEX Hosting Services List of Ecosystem Members Information Vendors Application Service Vendors Financial Technology Service Providers 31
Slide 32: HKEX Hosting Services: List of Ecosystem Members
HKEX Hosting Services List of Ecosystem Members Network Service Providers 32
Slide 33: HKEX Hosting Services: Data Centre Services
HKEX Hosting Services Data Centre Services Phase one with around 320 racks available for application Cold aisle containment with supplementary cooling to support 6kVA / rack 24x7 electrical and mechanical facility management and monitoring 24x7 on-site multi-level physical security managemen
Slide 34: HKEX Hosting Services: Connectivity Services
HKEX Hosting Services Connectivity Services HKEX Service Network (HSN) provides eligible users consolidated connection to HKEX market data, trading and clearing systems Cross Connect (XCN) puts ecosystem members in touch through direct copper or fiber connection 34
Slide 35: HKEX Service Network (HSN) Estimated Latency Benefit
HKEX Hosting Services HKEX Service Network (HSN) Estimated Latency Benefit HSN offers consolidated connection to HKEX Systems Latency <= 50µs Round Trip HSN SDNet Core in Hosting Services HKEX Data Centre EP/IV/ASP HKEX systems SDNet Wide Area Network SDNet EP/IV/ASP Latency <= 1.5ms Round Trip EP=
Slide 36: Hosting Services Progress Review
Hosting Services Progress Review Orion Trading Platform launched in February 2018 Derivatives Market started in June 2013. Handling 40% ADV Orion Central Gateway launched in June Service 2014 announced in Securities Trading March 2012 started in December 2012. Handling 20% ADT ADT = Cash Trading Ave
Slide 37: China Connectivity
China Connectivity 28 Exchange Participants connecting to Shanghai and Shenzhen Stock Connect through HSN 37
Slide 38: Reach Us at HSsales@hkex.com.hk
Reach Us at HSsales@hkex.com.hk (852) 2211 6447
Slide 39: Agenda
AGENDA 1 Opening Remarks and Overview – Winnie Poon, Head of Market Data Key Marketing Programmes 2 – Jin Qian, Head of Data Licensing and Marketing, Market Data Customer-centric Market Data Compliance Programme 3 – Lianna Liu, Head of Data Client Audit, Market Data Hosting Services 4 – Andy Lee, He
Slide 40: Shanghai Stock Exchange Overseas Market Data Services
YOUR DATA INSIGHT Shanghai Stock Exchange Overseas Market Data Services August 2019
Slide 41: Agenda
Agenda 1. About China Investment Information Services Ltd. (CIIS) 2. CIIS Products 3. Connectivity Services
Slide 42: About CIIS: Background
1. About CIIS A. Background Established in Hong Kong in 1994 Wholly owned subsidiary of Shanghai Stock Exchange (SSE) SSE market data business: SSE INFONET Co., Ltd. - in charge of the licensing and operation of SSE market data in mainland China CIIS - in charge of the licensing and operatio
Slide 43: About CIIS: Overview of SSE INFONET Co., Ltd.
1. About CIIS B. Overview of SSE INFONET Co., Ltd. Main Businesses SSE Website Handle licensing and development of SSE market data SSE Mobile App Develop and maintain SSE cloud platform Develop and maintain SSE website and mobile app Provide services for members, listed companies and investo
Slide 44: CIIS Products and Services: SSE Market Data
1. About CIIS C. CIIS Products and Services I. SSE Market Data Operation and Licensing in overseas market SSE Level-1 and Level-2 market Data SSE Fundamental data to overseas vendors and end users Historical data, information disclosed by listed companies in XBRL format, listed company announce
Slide 45: CIIS Products and Services: Technical Connections
1. About CIIS SSE C. CIIS Products and Services Mainland Mainland II. Technical Connections for: China China Exchanges Vendors SSE market data and Index (through SSE Company InfoNet Ltd.) Mainland China market data Overseas market data CIIS Market data via Cloud (planning) Overseas Overseas
Slide 46: CIIS Products and Services: CIIP
1. About CIIS C. CIIS Products and Services Overseas Exchanges III. CIIP MOEX Deutsche China Investment Information Platform (CIIP) Börse aims to provide an aggregate business and Euronext technical platform for overseas information KAS vendors and datafeed end users to receive E mainland China in
Slide 47: CIIP: Mainland Exchanges and Index Provider
1. About CIIS C. CIIS Products and Services III. CIIP Mainland Exchanges and Index Provider ZCE SHFE CSI CFFEX 47
Slide 48: SPV of Shanghai-Hong Kong Stock Connect
1. About CIIS E. SPV of Shanghai – Hong Kong Stock Connect CIIS acts as a Securities trading service company Serves as an order routing facilitator to place southbound orders Southbound Eligible CIIS SSE Mainland SEHK Members (SPV) Investors Mainland Hong Kong 48
Slide 49: SPV of Shanghai-Hong Kong Stock Connect
1. About CIIS E. SPV of Shanghai – Hong Kong Stock Connect Mainland investors can trade eligible securities for trading under the southbound of Shanghai-Hong Kong Connect through CIIS Southbound orders are routed through CIIS to HKEx CIIS broker No.: 6996, 6997, 6998, 6999 49
Slide 50: CIIS Products: Overview
2. CIIS Products A. Overview No. of Licensed Information Vendors Real Time Level-1 Market Data 43 Real Time Level-2 Market Data 20 Delayed Level-1 Market Data 44 Real Time China Indices Data 54 Delayed China Indices Data 78 As of 1 July 2019 50
Slide 51: Level-1 and Level-2 Terminals against SSE Composite Index
2. CIIS Products A. Overview Level-1 and Level-2 Terminals against SSE Composite Index 1/2016 5/2016 9/2016 1/2017 5/2017 9/2017 1/2018 5/2018 9/2018 1/2019 5/2019 Level 1 Terminal Level 2 Terminal SSE Composite Index As of 31 May 2019 51
Slide 52: SSE Market Data Includes Cash and Derivative Market Data
2. CIIS Products A. Overview SSE Market Data Includes Cash and Derivative Market Data: Cash Market Derivative Equities Stock Options A shares, B shares Bonds Government bond, local government bond, corporate bond, etc. Funds Open-ended fund, closed-ended funds, ETF, etc. 52
Slide 53: Level-1 Vs Level-2 Market Data
2. CIIS Products B. SSE Market Data Level-1 Vs Level-2 Market Data Item Level-1 Level-2 Format TXT/FAST FIX/FAST Update Frequency 3 seconds 3 seconds Bandwidth Requirement 4Mbps 10Mbps Market Depth 5 levels 10 levels Quantity of each of the top 50 Order Information Nil orders at the best bid/offer p
Slide 54: A-Share Data from Stock Connect VS from CIIS
2. CIIS Products B. SSE Market Data A-Share Data from Stock Connect VS from CIIS From HKEx From CIIS Stock Connect A-Share Data Level-1 Market Data Level-2 Market Data Market Depth 1 5 10 Scope Eligible stocks for northbound trading All listed securities Information vendors, financial institutions,
Slide 55: China Indices Data
2. CIIS Products C. China Indices Data All the indices created by SSE e.g. SSE Composite Index, SSE A Share Index, SSE B Share Index, SSE 180 Index, SSE 50 Index All the indices created by CSI e.g. CSI 300, CSI 500 Fundamental data e.g. Weighting of constituent stocks, free float shares inform
Slide 56: Fee Schedule
2. CIIS Products D. Fee Schedule For Terminal Services with streaming services: Redistribution of SSE Level-1 Market Data Redistribution of SSE Level-2 Market Data Example: Category_1L1 Example: Category_1L2 License fee: US$40,000 per annum License fee: US$60,000 per annum Subscriber fee*:
Slide 57: Fee Schedule
2. CIIS Products D. Fee Schedule For Terminal Services with streaming services: Redistribution of China Indices Data Example: Category_61 License fee: US$6,000 per annum Subscriber fee*: US$3 per subscriber unit per month *Minimum monthly subscriber fee is applicable. 57
Slide 58: Fee Schedule: Open Channel Services
2. CIIS Products D. Fee Schedule For Open Channel Services: Annual Subscriber Fee Package Launched since March 2018 Display SSE Level-1 market data and China indices on, for example, public website and mobile app No need to report the number of individual subscribers and pay the subscriber fee
Slide 59: Application
2. CIIS Products E. Application If you want to redistribute SSE and/or China indices data, please contact CIIS marketing department. Application procedures are available on our website: www.ciis.com.hk 59
Slide 60: Application
2. CIIS Products E. Application Fee schedule, application forms can be obtained from our website. 60
Slide 61: Connectivity Services: SSE Market Data
3. Connectivity Services A. SSE Market Data SSE Level-1 Market Data Internet or leased line connection Connect to 2 production sites (HKEX DC and Ap Lei Chau DC) For leased line connection, bandwidth requirement is 4Mbps SSE Level-2 Market Data Leased line connection Connect to 1 test site
Slide 62: Connectivity Services: SSE Market Data
3. Connectivity Services A. SSE Market Data Level-1 Market Data Level-2 Market Data Peak Bandwidth 1.1Mbps 3.2Mbps On 9 April 2019 No. of Transactions ~19.31M (Equities) The Highest No. of Transaction in 1st ~26.96M Half of 2019 (Equities) (on 8 March 2019) 62
Slide 63: Connectivity Services: CIIP Market Data
3. Connectivity Services B. CIIP Market Data On 4 April 2019 Market Data Peak Bandwidth Trade Volume CFFEx Level-2 Data 2.6Mbps 251,317 (Lot) DCE Level-2 Data 5.3Mbps 10,517,666 (Lot) ZCE Level-2 Data 1Mbps 7,998,692 (Lot) SHFE Level-1 Data 1.2Mbps 10,911,530 (Lot) 44,066,762,020 (RMB) SZSE Level-1
Slide 64: SSE Level-2 Market Data Distribution Platform
3. Connectivity Services SSE Level-2 Market Data Distribution Platform Test Line: Metro Unicast, UDP/TCP IP SSE InfoNet Ltd. Leased Line Lease (wholly owned Internationa d subsidiary of l Leased Information Third Party Lines SSE) Lines Vendors/ Content CIIS Leased End Users (CIIP) Lines/ Cross SSE T
Slide 65: Thank You!
Thank You! Contact Us: marketing@ciis.com.hk
Hong Kong Exchanges and Clearing — Investor Presentation (August 2019) on 6ix