The Hong Kong Futures Exchange (HKFE) updated Members today on the Hang Seng Index (HSI) Futures and Options migration process. The Exchange remains committed to the migration of its HSI products to HKATS and becoming a fully electronic marketplace. Migration is a process and today's briefing is just one step in that process.

Since announcing that migration would be postponed, the Exchange has appointed a project manager and adopted a new project plan for migration. It is now in the process of performing a thorough system review, addressing issues that arose during last year's simulated trading, adding new functions to the system and conducting rigorous, comprehensive internal testing.

The new functions are based on Members' feedback. They include a new, innovative pre-market open process to enhance the market opening mechanism and bulletin board features that provide a facility for extended combination order publishing.

The migration project includes Member acceptance tests, followed by simulated trading that will involve all Members. The Exchange expects to announce a timetable for these in early March.

The Exchange plans to announce a timetable for the simultaneous migration of HSI Futures and Options to HKATS on the successful completion of the Member acceptance tests and simulated trading, pending the approval of the Securities and Futures Commission.

Additional briefings are planned to enhance Members' readiness for migration. There will also be training classes, HKATS practice sessions, and updates to the HKATS Users' Guide and the Trading Rules and Procedures.

For further enquiries regarding this press release and the Member Circular, please contact HKFE Corporate Communications: Ms. June Wong on 2842 9448 or Mr. Scott Sapp 2842 9421.