The Hong Kong Futures Exchange (HKFE) announced that today's simulated trading test on the functionality of its HKATS electronic trading system was successful.

It was the latest in a series of tests the Exchange has been running as part of the preparations for the migration of Hang Seng Index (HSI) Futures and Options from open outcry trading to HKATS.

During the 75-minute functionality test, more than 21,000 trades, which is 300% of the normal daily trade executions, were completed. All trades were executed instantaneously, within split seconds of matching according to strict price/time priority.

"This test was planned to emulate normal trading, but in the end trade executions were well beyond any reasonable expectations for a normal trading day," Chief Executive Randy Gilmore said. "The system's performance during this test met our expectations even though the number of transactions was unrealistic.

"The test also demonstrated that the software issues that our Chairman, Dr. Geoffrey Yeh, mentioned earlier this week have been properly rectified," Mr. Gilmore added.

In addition to the functionality test, the Exchange also conducted several simulated trading sessions designed to help analyse the operating capacity of HKATS.

"The stress levels placed on HKATS during the three simulated trading stress sessions were extremely heavy, with over 7,500 trades executed during one 15-minute period," Mr. Gilmore said. "Activity was well beyond all realistic stress levels we would expect to encounter on the system. The data from these tests will help us fully understand the upper limits of the system."

Members and the Securities and Futures Commission (SFC) will be fully advised of all the details of today's tests as soon as the full report is available.

"The local and international investment communities are looking forward to HSI Futures migration," said HKFE Chairman Dr. Geoffrey Yeh. "And we remain committed to helping to enhance Hong Kong's position as an international financial centre."

The Hong Kong Futures Exchange is a leading futures and options marketplace in the Asia Pacific Region, with a membership of over 130 companies, including a number of major international institutions. The Exchange is actively diversifying its product base, which now includes currency, interest rate and equity-based products.

For further enquiries, please contact HKFE Corporate Communications:

Mr Mark Tung on 2842 9448 or Miss Chiu Yeung on 2842 9322.