The Hong Kong Futures Exchange (HKFE) announced that today's simulated trading test of its HKATS electronic trading system has been completed as planned.

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

The test comprised two 30-minute sessions and was designed to simulate HSI Futures and Options market activity on HKATS at two levels:

• Session 1: 2-times normal market activity levels as measured by two benchmarks* based on market activity during the first six months of the year.
• Session 2: 3.5-times normal market activity levels as measured by the two benchmarks.

"The test was aimed at confirming HKATS performs as designed with market activity at 3.5-times normal market levels, but today's simulated trading activity ended up being greater than that, and the preliminary results show HKATS performed as designed at over 4-times normal, or at a market activity level of 3-times the Exchange's historical peak," Executive Director Royce Yuen said.

"The Board has determined that the 3.5 times normal market level is sufficient capacity for current market conditions. And it has always been the Exchange's plan to enhance the capacity of the system at the appropriate time to accommodate anticipated market growth," Mr. Yuen added.

Members and the Securities and Futures Commission will be fully advised of all the details of today's test as soon as the complete report is available.

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.

* - Benchmark #1 = 1,259 trade executions per 30 minutes or 42 trades per minute. (Average trade executions in the first 15 minutes of the trading day (759) plus the average trade executions in each of the other 15-minute time segments during the trading day (500).

Benchmark #2: 1,191 trade executions per 30 minutes or 40 trades per minute. (Average trade executions in the last 15 minutes of the trading day (691) plus the average trade executions in each of the other 15-minute time segments during the trading day (500).

The same benchmarks were used for the test on 24 July.

For further enquiries, please contact HKFE Corporate Communications: Mr. Mark Tung on 2842 9448 or Miss Chiu Yeung on 2842 9322.