Advertisement
Advertisement

New HKEx timing system aims to permanently end trading hiccups

Hong Kong Exchanges and Clearing (HKEx) is to install a new timing system it hopes will permanently resolve the problem which has interrupted trading during three days in the past six months.

An interim solution will be operating when trading resumes this morning.

The latest breakdowns in the HKEx's Automatic Order Matching and Execution System (AMS/2) occurred on Friday when trading was halted for 14 minutes, prompting a request for an explanation from the Securities and Futures Commission and general concerns about the system's reliability.

HKEx chief executive Kwong Ki-chi yesterday confirmed brokers' suspicions that the latest breakdowns were triggered by an interlock caused by the input of two orders at the same time.

He said the exchange's information technology engineers had identified the source of the problem over the weekend and devised interim and permanent solutions.

The interim one, he said, was being introduced immediately so the interlock problem would be resolved within seconds if it arose again.

He said the permanent solution, which would take about a fortnight to develop and install, involved creating a new timer process.

'In the meantime, the exchange installed the software for the interim solution over the weekend,' he said. 'Under the interim solution, the system will automatically release the interlock and request traders to re-input their interlocked orders within seconds.' Problems with the existing trading system have prompted concerns that the exchange's new AMS/3 system, which is scheduled to be launched this quarter, might need more testing before it is introduced.

However, Mr Kwong said the same problems would not arise in AMS/3 because it had a totally different design for determining the chronological priority for orders.

He said HKEx would submit a full report on Friday's incident to the SFC with full details of the cause of the problems and their solutions.

Post