The Hong Kong Futures Exchange (HKFE) announced today that it has revised tomorrow's (Saturday's) simulated trading test of its HKATS electronic trading system following discussions with the Securities and Futures Commission (SFC).

Tomorrow's (Saturday's) test is 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.

Under the revised test plan, there will be four 30-minute sessions designed to simulate trade executions and related market activity over the course of a regular business day. The test levels will be as follows:

• Session 1: 4.8-times normal market levels or 3.3-times the historical peak;
• Session 2: 2.6-times normal market levels or 1.8-times the historical peak;
• Session 3: 3.3-times normal market levels or 2.3-times the historical peak;
• Session 4: 4.0-times normal market levels or 2.8-times the historical peak.

The 31 July test was designed to simulate market activity levels of 2-times and 3.5-times normal and HKATS performed as designed.

"Saturday's test is designed to simulate bursts of activity on a regular business day. The heaviest trading often occurs at the market's open and close so the first and last sessions are designed to have the highest levels of activity." Executive Director Royce Yuen said.

"HKATS has demonstrated that it performs as designed at market levels of over 4-times normal and 3-times historical peak," Mr. Yuen added. "Saturday's test is designed to assess HKATS' performance at over 4-and-a-half-times normal and 3.3-times peak."

The Exchange has also modified one of HKATS' functions to further enhance its performance. As a result, order depth information - the details on all orders in the market - will be available on demand instead of being updated automatically with or without the user's request.

"We have found a better, more efficient way to provide the information while continuing to deliver the key real-time price data," Mr. Yuen explained. "The change is consistent with the way the world's other leading electronic markets provide information and it has enabled us to make HKATS even stronger."

Members and the SFC will be fully advised of all the details of tomorrow's (Saturday's) test as soon as the full 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.

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