Speculation fear fails to force time change
The Stock Exchange of Hong Kong yesterday stood firm and refused to extend its trading hours in line with the futures exchange.
It also reiterated its claim that different trading hours for the cash and futures markets would pave the way for renewed market manipulation.
The Hong Kong Futures Exchange (HKFE) will open 15 minutes earlier and close 15 minutes later from Friday.
The proposal was approved by the Securities and Futures Commission on Monday in the face of stiff opposition from the stock exchange.
The move will help the HKFE compete with the Singapore International Monetary Exchange (Simex), which will launch a Hong Kong index futures product on Monday.
After the change, the HKFE's trading hours will match those of Simex but will no longer be synchronised with the stock exchange.
'The exchange believes unsynchronised trading hours between the cash and futures markets will provide opportunities for market manipulation,' the exchange said. 'The exchange expressed disappointment over the decision by the Securities and Futures Commission to approve the extension.
'The exchange had reservations about the argument that an extension of trading hours would help strengthen the competitiveness of the market.' The stock exchange said it would take effective measures to protect its commercial interests by denying stock price data to its competitor.
The exchange has repeatedly urged all 30 information providers not to supply price data for the Simex product.
Hong Kong Stockbrokers Association chairman Dannis Lee Jor-hung and legislator Fung Chi-kin, who represents the financial services sector, also opposed the SFC decision.
Mr Fung said it would create chaos during the extension period when the cash market was not trading.
The HKFE's new trading hours will be 9.45am to 12.30pm and 2.30pm to 4.15pm.
