Survey in favour of electronic delay

PUBLISHED : Wednesday, 28 July, 1999, 12:00am
UPDATED : Wednesday, 28 July, 1999, 12:00am

A survey has revealed the majority of brokers would prefer a delay of the Hang Seng Index (HSI) futures migration from open-outcry to electronic trading.

The futures exchange yesterday released an evaluation for the Hong Kong Automated Trading System (HKATS), done by its member brokers following Saturday's test.

The evaluation showed the brokers had divided into two camps over the issue, in which 54 brokers out of 105 surveyed did not believe HKATS could effectively handle the HSI futures trading if the product migrated this Monday as scheduled, while 40 brokers believed it could.

Eleven brokers responded they were 'not sure'.

However, in terms of the product's market share, the supportive brokers had a slight majority with a combined HSI futures market of 44 per cent, over the sceptical brokers which accounted for 43.7 per cent.

The system proved it could handle up to four times of normal trading volume but hit its capacity at five times in Saturday's test.