Tests on HKATS at final stages
Futures traders have been asked to attend a briefing tomorrow on the coming simulation tests by the Hong Kong Futures Exchange to ensure the tests will run smoothly.
The futures exchange has scheduled two more full simulation tests for its new electronic trading system - Hong Kong Automated Trading System (HKATS) - at the request of the Securities and Futures Commission.
The tests, to be held on August 21 and 28, will be the last chance for the exchange to win SFC approval for its plan to shift Hang Seng Index futures to electronic trading this year.
The exchange, which has carried out six tests on HKATS, has warned the move could be pushed back to next year because of concerns it might be hindered by the millennium problem if it was not made by September 6.
In a circular to futures exchange members yesterday, traders will be asked to test the system at three times the historic peak trading volume, slightly lower than the 3.5 times historical peak of the previous test held on August 7.
Futures members are also being asked to attend a meeting organised by the exchange tomorrow to review the August 7 HKATS test results and the test scripts and procedures for the coming two tests.
The exchange said the further full simulation tests are the result of new discussions with the SFC and are designed to confirm the capacity of HKATS at three times historical peak trading volume.
Members were also warned to comply with the exchange's test guidelines or face 'termination of participation without prior notice.' The futures exchange had originally scheduled to shift its flagship HSI futures to HKATS on August 2, but the plan was delayed twice.