Hong Kong Exchanges and Clearing Limited (HKEx) will introduce the Order Routing System (ORS) to AMS/3, the Third Generation Automatic Order Matching and Execution System, and its Online Trading Service on 23 February (Friday).
ORS is an open system that enables investors to place stock market orders through the Internet, mobile phones and other electronic channels, which may be developed by HKEx or vendors. After an order is placed through an electronic channel connected to ORS, the system automatically sends the order to a Stock Exchange Participant for approval and submission to the market for matching and execution.
Over 100 Stock Exchange Participants have expressed interest in connecting their trading systems to ORS. Twenty-one will connect to the system on 23 February. The remainder will connect to the system in batches, from late March.
Stock Exchange Participants connected to HKEx's Online Trading Service will be able to offer their clients Internet trading. All Stock Exchange Participants, including those who have connected to the HKEx channel, will also be able to offer their clients electronic trading services, including Internet and mobile trading, through Proprietary Network System (PNS) channels provided by vendors.
"ORS is an open system so it enables us to provide an electronic trading infrastructure that can offer brokers and investors choices," said Lawrence Fok, Deputy Chief Operating Officer of HKEx. "Several vendors have already developed electronic trading channels for ORS and we welcome additional vendor-developed channels."
HKEx sees the introduction of ORS facilitating further development of online trading in Hong Kong. "It will take time for brokers and the community to become familiar with online trading so it will take time for it to grow, but there is vast potential," said Roger Lee, Senior Vice President of E-Business and Information Services at HKEx.
Hongkong Post is supporting the system through e-Certs which use digital technology to ensure the confidentiality and integrity of electronic transactions.
"Hongkong Post will provide full public certification authority service for Internet stock trading. With the application of digital signature and encryption technology, secure online transactions can be conducted and the identities of investors authenticated. Our service provides a secure environment that addresses the four essential concerns of online investors: authenticity, integrity, confidentiality and non-repudiation," said Kingsley Li, Assistant Postmaster General (Business Development) of Hongkong Post.
In addition to Hongkong Post providing the digital certification technology, a group of vendors is providing different PNS models for electronic trading through ORS. They are HK Stock Ltd., iAsia Technology Ltd., New World Mobility, and Reuters Hong Kong Ltd.
"By deploying Hong Kong Stocks PNS channel, brokers who have chosen to connect their trading systems to ORS can offer the most comprehensive and sophisticated Internet trading service to their clients," said Stanley Cheung, Managing Director of HK Stock Ltd.
"iAsia Technology is delighted to be associated with ORS, which will truly benefit Participants and investors alike. The iAsia PNS provides a seamless, user-friendly interface between brokers systems and HKExs Order Routing System, enabling investors to place trades electronically through the Internet, interactive TV, voice recognition systems or mobile devices, including mobile phones, WAP phones and financial PDAs. We have developed a system with scalability, flexibility, security and depth that puts us on the leading edge of stock trading technology and demonstrates our technical expertise and in-depth understanding of the industrys needs" said Lawrence Ho, Executive Director of iAsia Technology Ltd.
"New World Mobility is extremely pleased to be a part of the future trend in secured mobile stock trading. As we work with Hongkong Post and HKEx, our objective is to provide solutions -- a secure infrastructure and a single SIM for multi-broker stock trading -- that offer a high degree of security, convenience and flexibility to investors unmatched anywhere in the market. By utilising the Mobile Certificate and HKExs Order Routing System for AMS/3, we will surely exceed expectations in mobile stock trading as we move forward in this new direction, " said Pierre Fitzgibbon, Managing Director of New World Mobility.
"Reuters InterTrade Direct (RITD), which is a global cross-border service supporting the entire transaction processing chain, including order handling, will link up with ORS to enable local brokers to receive and execute orders from institutional and retail investors and other brokers. RITD brings together a powerful combination of our capabilities: global reach, transaction processing, open systems and customer service," said Kenneth Tsui, Managing Director of Reuters Greater China.
List of Exchange Participants to connect to ORS on 23 February 2001.
- Alexandra Stock Co. Ltd.
- Cheer Pearl Investment Ltd.
- Chow Sang Sang Securities Ltd.
- Christfund Securities Ltd.
- Concord Capital Brokerage Ltd.
- e2-Capital Brokerage Ltd.
- Emperor Securities Ltd.
- Evergreen Securities Co.
- Gransing Securities Co., Ltd.
- Guangdong Securities Ltd.
- Hing Wai Allied Securities Ltd.
- Kam Wah Securities Ltd.
- Karford Securities Ltd.
- Ko's Brother (Securities) Co.
- Lawsons Securities Co.
- Po Kay Securities & Shares Co. Ltd.
- Tak Fung Shares Investment Co. Ltd.
- Tsun Chi Yuen Securities Co. Ltd.
- Wing Hang Shares Brokerage Co. Ltd.
- Yu On Securities Co. Ltd.
- Yue Xiu Securities Co. Ltd.