Hong Kong Exchanges and Clearing Limited (HKEx) is set for the second phase of its network consolidation project. Phase II will result in cost savings and other benefits for all Clearing Participants, and it will move the project one step closer to the long term objective: the migration of HKEx’s major market systems to SDNet*, an integrated securities and derivatives markets network. 

In the rollout of SDNet Phase II, CCASS/3* (including CCMS*) circuits will be migrated to SDNet in batches on the last weekend of this month and the first two weekends of next month. There will be a two-week stabilisation period after the successful migration of the final batch.  During that period, the current CCASS/3 Wide Area Network will operate in standby mode as a precautionary measure. 

Upon completion of the migration, the majority of Clearing Participants will enjoy savings of about 20 per cent on the current monthly network charges.  Clearing Participants with high bandwidth lines will enjoy a bigger discount because optical fibre technology is driving down the costs of high bandwidth lines more significantly.  Some Participants will enjoy upgraded network  service through higher bandwidth at the same charges as before.         

“SDNet has been operating smoothly and it has been very reliable since the Phase I rollout in October last year,” said HKEx Chief ExecutivePaul Chow. “With the collaborative efforts of many parties, including the Participants of three clearing houses (HKSCC*, HKCC* and SEOCH*) and the network service provider, PCCW, all Phase II preparations have been completed. 

“SDNet offers improved reliability, and provides greater operational efficiency and cost effectiveness to both HKEx and Participants. The overall network cost savings to all Clearing Participants is estimated to be about $3.37 million per year,” Mr Chow added.  “The network consolidation project, part of HKEx's effort to strengthen our market infrastructure, demonstrates HKEx's commitment to maintaining a high quality market to ensure Hong Kong retains its position as a leading international financial centre.”

*Glossary