Outside check urged for new trade system
The Government wants an independent consultant to test the reliability of the futures exchange's new automated trading system, according to sources.
The move reflects official anxiety that system problems could seriously damage the futures market, which is already threatened by offshore rivals.
However, Hong Kong Futures Exchange chief executive Randy Gilmore expressed confidence in the new system, saying it had passed a number of external tests.
The exchange plans to replace open outcry with electronic trading for Hang Seng Index futures and options next year.
A Government source said it planned to ask the futures exchange to appoint an independent consultant or technical company to review the system.
'Hang Seng Index futures and options are the major products traded in the exchange,' the source said.
'If anything goes wrong with the automated trading system after [the change-over], it will be a disaster for the futures market in Hong Kong.' Mr Gilmore said: 'I believe the new system is solid and will work smoothly when it is launched.
'The new futures exchange trading system and software are used in several successful markets today and have gone through many external technical reviews.' He believed the new system, which is now being installed, would be launched early next year, well ahead of the second-half start-up originally foreseen.
'The migration of Hang Seng Index futures and options to electronic trading is the top priority of the exchange,' he said.
Of about 100 active trading members of the exchange, 98 are in the process of installing the automated trading system.
The first test of the new system would be made at the end of this month with more tests to be made next year, Mr Gilmore said.
