The Volatility Control Mechanism (VCM) in the securities market and the derivatives market was launched on 22 August 2016 and 16 January 2017 respectively. As VCM was new to Hong Kong when it was launched, a light-touch and simple model was adopted which only allows a maximum number of one trigger per trading session.  

HKEX propose strengthening VCM by allowing multiple triggers per trading session to better safeguard market integrity. Once implemented, there will be no maximum number of triggers imposed.

Proposed Enhancement on Volatility Control Mechanism

• Presentation Materials: Enhancements on Volatility Control Mechanism
• FAQ
• Circular: Enhancements for Volatility Control Mechanism (“VCM”) and Pre-Market Opening Session (“POS”) of the Derivatives Market

Other Reference Materials

• Overview of VCM and Tentative Timeline
• Consultation Conclusions
• Frequently Asked Questions
• Trading Mechanism of Volatility Control Mechanism (VCM) in the Derivatives Market