The Stock Exchange of Hong Kong will introduce the third generation of its automatic order matching and execution system, AMS/3, in the middle of next year.
At a presentation today (Thursday) detailing the features of the system, S.F. Wong, Senior Executive Director, Market Services Group of the Exchange, said AMS/3 was a world class trading system that would raise the Hong Kong financial market’s competitiveness. The Exchange will spend $260 million for the implementation of AMS/3.
“It will provide long-term-market facilities that will cater for future market development needs and strengthen Hong Kong’s position as a major international financial centre.
“It will increase Exchange members and investors' access to the central market by allowing multiple-market trading and extension of the trading hours. It will also provide a platform for the implementation of straight through trading,” Mr Wong said.
He said AMS/3 would provide a more service-oriented market environment that was flexible and sensitive to the needs of market participants and investors. “Brokers will be able to choose the trading mechanism that best suits their operations and needs, and investors will be able to choose the order-placing channels that best meets their needs.
“It will enable brokers to trade in different financial products at a single trading terminal and offer retail investors greater convenience to trade different financial products around the clock.
“Investors will be able to place orders through the Internet, by telephone or through the terminals of services providers' proprietary routing networks connecting to the Exchange's order-routing system. The security of brokers’ clients and investors is strengthened by the provision of latest electronic investor authentication.
“AMS/3 will send order confirmations to investors automatically by e-mail, pager or mobile telephone. This will provide a better audit trail and eliminate disputes between brokers and clients as well as provide better investor protection.
“Its electronic IPO function will reduce brokers’ manual work in IPO processing, shorten the cash locked up period for investors and reduce subscription costs.
“Open Gateway and multi work-stations provide greater flexibility for brokers and allows investors easier access to the market and reduces investment risk. Its built-in credit control function strengthens risk management and helps brokers reduce manpower costs.
“AMS/3 will help equip our market for future developments and strengthen the competitiveness of theHong Kong securities market,” Mr Wong concluded.
Corporate Communications Department