Hong Kong Exchanges and Clearing Limited (HKEx) said today (Monday) that the trading hours of its securities market will be extended 10 minutes to 16:10 on a normal trading day when the Closing Auction Session for the securities market commences on Monday, 26 May.  In parallel with the change, the closing time for trading of stock index futures and options (SIFO) contracts will be extended from 16:15 to 16:30, except on the last trading day of the month.

On a half-day trading day (eg 24 December, 31 December or the day before the first day of the Lunar New Year), trading hours of the securities market will be extended from 12:30 to 12:40, and the closing time for trading SIFO contracts will be extended from 12:30 to 13:00, except on the last trading day of the month. 

HKEx announced on 31 October last year that its securities market would introduce a Closing Auction Session on 26 May this year subject to market readiness. The rollout date has been confirmed after the successful completion of extensive system tests and market rehearsals. 

In addition, all Broker Supplied System, or BSS, users and directly connected information vendors have declared to HKEx their system and operational readiness for the Closing Auction Session.  To help Exchange Participants and other market users prepare for the implementation of the Closing Auction Session, HKEx has delivered a series of seminars since April to more than 500 attendees from 200 plus brokerage firms. 

We are pleased that the market supports this initiative and is now ready for the implementation of the Closing Auction Session”, said Eric Yip, HKEx's Head of Cash Market.

“Closing auction is an internationally proven practice aimed at providing a fair and market-driven method for concluding market trading and determining closing prices,” Mr Yip added.  “It will bring together the buy and sell interests in specific securities and consolidate all orders for execution at a single price that reflects the market supply and demand at closing".