Hong Kong Exchanges and Clearing Limited (HKEX) has published a consultation paper to seek views on its proposed after-hours trading (T+1 Session) enhancements.
The proposed changes include:
- Extending the T+1 Session for equity index futures from the current 5:15 pm to 11:45 pm to 5:15 pm to 3:00 am the following day in two phases; and
- Including the four most actively traded equity index option contracts (Hang Seng Index (HSI), H-shares Index (HHI), Mini-HSI and Mini-HHI options) in the T+1 Session.
The T+1 Session is limited to the derivatives market now and there are no plans to include the securities market.
Since the T+1 Session was introduced in 2013 for two stock index futures contracts, products have been added and average daily volume has increased about sixfold, with much of the activity during the time that overlaps with day time trading in the US and European markets.
We review our market structure periodically, taking into account changes in market conditions and the latest industry feedback,” said Roger Lee, HKEX’s Joint Chief Operating Officer and Head of Markets. “The proposed enhancements are in response to the need for a more comprehensive range of risk management and trading tools in our T+1 Session when the markets in the US and Europe are open for day time trading.
After-hours equity index options trading would complement our after-hours trading of equity index futures and align us with the other international markets that offer after-hours trading of both products.
If the proposed enhancements are introduced, they will be rolled out in phases to allow sufficient time for communication with the market and rehearsals to ensure all systems are ready for the changes.