Hong Kong Exchanges and Clearing Limited (HKEx) has completed the fourth and the final phase of its implementation of SDNet, an integrated Optical Ethernet network infrastructure for its cash, or securities, and derivatives market trading, clearing and settlement, and market data dissemination systems. SDNet provides flexible and higher bandwidth than the multiple networks it replaced, and it is more reliable and efficient.
The migration of circuits to SDNet has resulted in significant network cost reductions for Exchange Participants, Clearing Participants, information vendors and HKEx. The combined network cost savings for all Participants and information vendors are about $20 million per year with increased network bandwidth services.
The final phase of SDNet rollout for AMS/3* circuits was successfully completed on 14 July and the two-week stabilisation period ended on 28 July with no abnormalities reported. The 31-month project began in January 2005.
“SDNet is part of HKEx’s continuing efforts to further strengthen its market infrastructure and take advantage of advanced technologies to optimise its IT operating costs. It also demonstrates HKEx’s commitment to maintaining a robust and high quality market infrastructure,” HKEx Chief Executive Paul Chow said.
The network service provider, PCCW, supplied SDNet and assisted in its implementation, and PCCW will continue to maintain and operate the network.
“We thank PCCW, Participants and information vendors for their contributions to the success of the SDNet project,” Mr Chow said. “The completion of the project would not have been possible without their hard work and support.”
SDNet Project Implementation Timetable
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Third Quarter 2005
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Project Development: SDNet Infrastructure Set-up and Testing
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October 2005
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Completion of Phase I: HKATS, DCASS and PRS*
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June 2006
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Completion of Phase II: CCASS/3*
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December 2006
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Completion of Phase III: MDF*
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July 2007
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Completion of Phase IV: AMS/3*
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* AMS/3, the Third Generation Automatic Order Matching and Execution System; CCASS/3, the Latest Generation Central Clearing and Settlement System; and MDF, the Market Data Feed, are the major securities market systems. HKATS, the Hong Kong Futures Automated Trading System; DCASS, the Derivatives Clearing and Settlement System; and PRS, the Price Reporting System, are the major derivatives market systems.
Additional information on SDNet is available on the HKEx website at: http://www.hkex.com.hk/eng/market/dv_tradinfra/pages/sdnetmain.aspx