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 four 30-minute sessions and was designed to simulate trade executions and related market activity at four different market activity levels.

"The test was aimed at assessing HKATS' performance at a variety of market activity levels, including over 4-and-a-half-times normal market levels, or 3.3-times the historical peak. The actual number of deals was higher than the planned number of deals in three of the four test sessions. Preliminary analysis of the results revealed the system performed as designed at market activity levels that were higher than the levels called for in the plan," Executive Director Royce Yuen said. "The preliminary analysis also revealed that modifying the Order Depth Window so that it displays real-time information on-demand, instead of constantly, enhanced the performance of the central system.

"As we have said in the past, the Board has determined that the 3.5-times normal market levels is sufficient capacity for current market conditions, Mr. Yuen added. "And it has always been the Exchange's plan to enhance the capacity of the system at the appropriate time to accommodate market growth."

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

The Board will then review the results and determine the next steps in the process of migrating HSI Futures from open outcry trading to HKATS.

At the conclusion of the simulated trading test each participating Member was asked to express an opinion as to whether HKATS can effectively handle trading of HSI Futures. As of 4:30 pm today, 98 Members had responded with 81 Members (82.7%) indicating that they believed HKATS operating at a market activity load of 3.3-times peak could effectively handle trading of HSI Futures and 17 Members (17.3%) indicating that they believed it could not.

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.