Market Turnover
-






-
-
|
|
|
|
|
|
-
-
-
Loading

HKEx Sets Date for Reduction of Minimum Trading Spreads for Shares Trading Above $30 and Changes in AMS/3 Trading Parameters

Market Operations
29 Jun 2005

Hong Kong Exchanges and Clearing Limited (HKEx) will reduce minimum trading spreads for shares trading above $30 and change trading parameters of AMS/3, the Third Generation Automatic Order Matching and Execution System, on Monday, 4 July this year.  Spreads for shares priced at or below $30 will remain the same.

The date was set after the successful completion of market rehearsals during the weekends of 18 and 25 June.  The Securities and Futures Commission has approved the rule changes required for the reductions.  As of 27 June, there were 29 shares priced above $30 (see Attachment 2).

HKEx published a consultation paper on the reduction of minimum trading spreads on 6 August last year.  The proposal to reduce minimum spreads was aimed at increasing the competitiveness of HKEx's markets, improving market efficiency and enhancing market liquidity.  The proposal was also aimed at making spreads more uniform.  The consultation results were considered by the HKEx Board in December last year and the Board decided that minimum trading spreads for shares trading above $30 would be reduced.

To complement the spread reductions, certain AMS/3 trading parameters have been modified (see Attachment 1).  Similar to the current arrangements, all securities other than stock options, debt securities and securities authorised to be traded in accordance with the minimum trading spreads for debt securities will have the same minimum trading spreads as shares. 

Detailed information on the consultation paper, consultation conclusions and respondents' submissions, as well as the questionnaire on proposed changes in trading parameters and other settings, is available on the HKEx website at http://www.hkex.com.hk.

 

Attachment 1

Reduction of Minimum Spreads for Shares

Currency unit #

Price from
Current Minimum Spread Revised Minimum Spread
(>30)
0.01 0.001 No Change
0.25 0.005 No Change
0.50 0.010 No Change
2.00 0.025 No Change
5.00 0.050 No Change
30.00 0.100 0.050
50.00 0.250
100.00 0.500 0.100
200.00 1.000 0.200
500.00 0.500
1,000.00 2.500 1.000
2,000.00 2.000
5,000.00 to 9,995.00 5.000

# Currency unit refers to Hong Kong dollar and other currencies.

 

Changes in AMS/3 Trading Parameters

Trading Parameters Current Revised
1. Quotation Rules 8 spreads 24 spreads  
2. Price warning
  -     1st level
  -     2nd level (other than warrants)
  -     2nd level (warrants only)

10 spreads
15 spreads
30 spreads

20 spreads
30 spreads
No Change
(ie 30 spreads)  
3.  Maximum number of matchable price queues for Enhanced Limit Orders and Special Limit Orders   2 queues 5 queues
4.  Maximum outstanding orders per broker ID   2,000 4,000

 

 

Attachment 2

List of affected securities as at market close of 27 June 2005

Stock Code Stock Name Type Closing Price (Currency unit)
1 CHEUNG KONG Main Board Stock 76.5
2 CLP HOLDINGS Main Board Stock 44.6
5 HSBC HOLDINGS Main Board Stock 126
6 HK ELECTRIC Main Board Stock 35.2
11 HANG SENG BANK Main Board Stock 106
12 HENDERSON LAND Main Board Stock 36.9
13 HUTCHISON Main Board Stock 70.5
16 SHK PPT Main Board Stock 76.25
19 SWIRE PACIFIC A Main Board Stock 69.25
26 CHINA MOTOR BUS Main Board Stock 63
44 HAECO Main Board Stock 49.9
53 GUOCO GROUP Main Board Stock 80.5
62 K M BUS HOLD Main Board Stock 44.4
96 WING LUNG BANK Main Board Stock 58
158 MELBOURNE ENT Main Board Stock 31.9
302 WING HANG BANK Main Board Stock 51.5
316 OOIL Main Board Stock 33.6
330 ESPRIT HOLDINGS Main Board Stock 54.75
440 DAH SING Main Board Stock 51
511 TVB Main Board Stock 44.2
522 ASM PACIFIC Main Board Stock 36.9
945 MANULIFE Main Board Stock 378
2888 STANCHART Main Board Stock 144.5
830 THE NIPPON FUND Unit Trust 51.5
2819 ABF HK IDX ETF Exchange Traded Fund 100.7
2823 A50 CHINA TRACKER Exchange Traded Fund 41.3
2828 HS H-SHARE ETF Exchange Traded Fund 49.2
2833 HS HSI ETF Exchange Traded Fund 144.5
2838 HS FXI C25 ETF Exchange Traded Fund 83.75
  • Securities traded at prices above $30 but without a closing price as at 27 Jun 2005 , if any, have been excluded from the above list.

Updated 29 Jun 2005