Hong Kong, January 11, 2005 - Hong Kong Exchanges and Clearing Limited (HKEx) and PCCW today announced that PCCW has been selected as the service provider for HKEx's new Internet Protocol (IP) - based integrated network for securities and derivatives markets (SDNet).
On completion, the SDNet will be the largest mission-critical IP-enabled securities and derivatives markets network in Asia, and will provide a powerful foundation for the long-term growth and success of the HKSAR financial community.
This project involves the integration of the telecommunication networks for HKEx's existing four major operating systems, AMS/3 (securities trading), HKATS/DCASS (derivatives trading, clearing and settlement), CCASS/3 (securities clearing and settlement) and MDS and PRS (securities and derivatives market data services for information vendors). All four market systems will be integrated into the new network, and will be given their own transmission channels and dedicated bandwidth allocation to ensure smooth handling of transactions.
The core network infrastructure construction work will begin next month, with the various market systems being integrated into the new network in phases. On completion at the end of 2007, the participant circuit capacity will be doubled and the data transmission bandwidth capacity greatly increased to support future business growth and the other high bandwidth applications.
"Consolidating the networks for our four major market systems offers improved reliability, and provides greater operational efficiency and cost-efficiency to both HKEx and participants of our exchanges and clearing houses," said Paul Chow, Chief Executive of HKEx.
"Creating an integrated platform from a single service provider will help ensure the service level and project management quality that is required by our mission-critical operations," Chow added.
Jack So, Deputy Chairman and Group Managing Director of PCCW, said, "our proposal to HKEx is an end-to-end managed service using IP technology that creates a flexible, scalable, cost-effective and, most importantly, a reliable platform. This new trading infrastructure will utilise the latest IP technologies combined with QoS (quality of service), which enables traffic prioritisation by application. The platform ensures the secure and reliable provision of real-time trading facilities, while also providing a flexible foundation for the addition of more participants and future applications."
In selecting a service provider to design and implement the new platform, HKEx applied a stringent set of requirements, including proved service level commitments and a strong track record in reliable, high-performance, mission-critical IP-based projects. It sought a provider who could guarantee extensive network coverage, with the in-house capabilities to create a private network that integrates full redundancy and diversity.
The chosen service provider was also required to demonstrate its abilities to supply an end-to-end managed solution, including network services, equipment, security, network management, dedicated project management resources, and round-the-clock customer support.
To enable the operational security that HKEx specified, PCCW will deliver project management and implementation services, ensuring seamless integration. All services will be provided with PCCW's market-leading service level commitment, including guaranteed network reliability.
PCCW has been the network provider to the Stock Exchange of Hong Kong (now a wholly-owned subsidiary of HKEx) since the introduction of its first AMS project in 1993. With more than 3,000 technology experts and over 700 certified engineers, PCCW has an extensive breadth of expertise and experience in IP networking and handling large-scale mission critical systems.
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Glossary
| HKATS |
Hong Kong Futures Automated Trading System |
| DCASS |
Derivatives Clearing and Settlement System |
| MDS |
Market Data Feed System for the securities market |
| PRS |
Price Reporting System for the derivatives market |
About PCCW
PCCW Limited (SEHK: 0008, ADR-NYSE: PCW) is the largest communications provider in Hong Kong and one of Asia's leading IT&T players. Hong Kong's image as a center of technology excellence continues to be enhanced by PCCW's innovation, especially in new generation fixed-line telephony, broadband, IT, wireless and delivery of home entertainment. Internationally, PCCW provides cutting-edge technical services to network operators, and enables organizations to bring their business to Asia and take Asian business to the rest of the world. The Company's English name was changed in 2002 from "Pacific Century CyberWorks Limited" to "PCCW Limited".
To learn more about PCCW, go to www.pccw.com.
About HKEx
Hong Kong Exchanges and Clearing Limited (HKEx) is the publicly listed holding company of Hong Kong's stock and derivatives exchanges and their associated clearing houses. HKEx provides a comprehensive range of products and services for issuers and investors. All its securities and derivatives products are traded electronically, and its clearing and settlement systems were upgraded to meet future market development needs.
To learn more about HKEx, go to www.hkex.com.hk.
Fact Sheet
Implementation of SDNet
HKEx's major market systems involved in the network consolidation project:
- AMS/3, Third Generation Automatic Order Matching and Execution System
- HKATS, Hong Kong Futures Automated Trading System, and DCASS, Derivatives Clearing and Settlement System
- CCASS/3, the upgraded Central Clearing and Settlement System
- MDS, Market Data Feed System for the securities market
- PRS, Price Reporting System for the derivatives market
Tentative implementation Schedule:
Phase 1: HKATS/ DCASS/ PRS integration completed by the end of Q4 2005
Phase 2: CCASS/3 integration completed by the end of Q2 2006
Phase 3: MDS and AMS/3 integration completed by the end of Q4 2007
Comparison of the network features prior and after the consolidation: