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HKEx Plans to Add a Price Control Mechanism to its Closing Auction Session on 22 June
Further to its news release on 13 February this year, Hong Kong Exchanges and Clearing Limited (HKEx) announced today (Thursday) plans to implement a percentage-based price control mechanism in the Closing Auction Session (CAS) for its securities market on 22 June this year, subject to the approval of the necessary rule amendments by the Securities and Futures Commission (SFC) and market readiness.
As outlined in the consultation conclusions published on 13 February this year, the mechanism sets a price limit of 2 per cent of nominal prices at 4 pm. Under the mechanism, any orders with prices outside the price limit will be rejected by the securities market’s trading system.
The following is the planned implementation schedule adopted by HKEx after it took into account feedback from Exchange Participants, information vendors and other market participants on the time required for system changes.
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| Task | Target Completion Date |
| 1. | Issue a circular and technical notes to all Exchange Participants, and deliver a separate notice and the transmission specification to information vendors | 5 March |
| 2. | Conduct briefing sessions for Exchange Participants and information vendors | End of March |
| 3. | Submit rule amendment for SFC approval | Mid-April |
| 4. | Complete end-to-end testing by Exchange Participants | Mid-May |
| 5. | Conduct two rounds of market rehearsals | 30 May and 6 June |
| 6. | Conduct post release test | 20 June |
| 7. | Implement the price control mechanism | 22 June |
HKEx will update Exchange Participants and information vendors on the implementation plan and schedule for briefing sessions through separate circulars.