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Block Trading Facility for futures and options to become standing facility

Market Operations
26 Apr 2002

Hong Kong Exchanges and Clearing Limited (HKEx) announced today that the Block Trading Facility (BTF) introduced for futures and options in October 2001 under a 6-month pilot programme will become a standing facility from the commencement of trading on Monday, 29 April 2002.

Block trades comprise large buy and sell orders privately negotiated apart from the public auction market.

The BTF extends HKEx's services and benefits to the marketplace, including:

  • Clearing House guarantees for transactions that may otherwise be executed over-the-counter;
  • Price and execution certainty for large deals;
  • Added liquidity; and
  • Contract standardisation.

"The Block Trading Facility has been well received by Exchange Participants and it has been actively used during the 6-month pilot programme period," said an HKEx spokesman.


Updated 26 Apr 2002