Software fault to blame for Hong Kong’s derivatives market closure
06 September 2019 Hong Kong
Image: Shutterstock
Hong Kong Exchanges and Clearing (HKEX) has re-opened its derivatives market and is now operating smoothly following a brief suspension this week.
The derivatives market was suspended at 2pm on 5 September, due to “prolonged connectivity issues” on the Hong Kong Futures Automated Trading System. The clearing system for derivatives was only open for the afternoon session.
The exchange has since confirmed that the software issues were caused by the vendor supplied trading system, that has now been isolated.
As of 6 September, HKEX has announced that there were no connectivity issues for exchange participants on the trading system reported in the morning.
Meanwhile, HKEX has carried out an analysis of the incident and the vendor software issue and has committed to updating market participants again at a later date.
Hong Kong’s futures and options trading in the derivatives market as an average daily volume of 1.18 million contracts for 2019 so far, down 4 percent on the same period last year, according to HKEX’s interim results for 2019.
The derivatives market was suspended at 2pm on 5 September, due to “prolonged connectivity issues” on the Hong Kong Futures Automated Trading System. The clearing system for derivatives was only open for the afternoon session.
The exchange has since confirmed that the software issues were caused by the vendor supplied trading system, that has now been isolated.
As of 6 September, HKEX has announced that there were no connectivity issues for exchange participants on the trading system reported in the morning.
Meanwhile, HKEX has carried out an analysis of the incident and the vendor software issue and has committed to updating market participants again at a later date.
Hong Kong’s futures and options trading in the derivatives market as an average daily volume of 1.18 million contracts for 2019 so far, down 4 percent on the same period last year, according to HKEX’s interim results for 2019.
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