HKEX to develop own derivatives platform

Hong Kong Exchanges and Clearing (0388) said it will develop its own derivatives platform that will offer near 24-hour trading and new products, speeding up digitalization to boost its status as an international financial hub.

The new Orion Derivatives Platform is expected to launch in 2028 and will be carried out in phases to ensure a smooth transition, said the bourse operator in a statement yesterday.

Developed by HKEX’s technology teams, it will offer “enhanced trading and clearing capabilities”, along with other risk management and efficiency tools, it said.

The ODP platform will be built on a modular architecture, making it easier to introduce new products, enhance microstructure, and add new capabilities to the market, it added.

This new platform will help differentiate HKEX’s derivatives offerings and elevate its competitiveness in the global derivatives marketplace, the operator noted, adding that it will help cement Hong Kong’s leading position as Asia’s risk management center and an international financial center.

Hong Kong stock market saw its benchmark index among the world’s worst-performing major measures last year due to capital outflows amid China’s economic slowdown and geopolitical tensions.

This came as HKEX chief executive Bonnie Chan Yiting said in her blog yesterday that the bourse operator will focus on four aspects for future growth, including utilizing technology to improve its clearing infrastructure and exploring new businesses such as carbon markets.

Meanwhile, HKEX will continue to leverage its strength in connecting China with international markets and look for enhancements to lift the liquidity of local markets, Chan noted.

“We believe there is significant scope for global investors to increase their allocations to the world’s second-largest economy, said Chan.

Meanwhile, China’s economy is going through fundamental structural changes, with domestic investors looking to diversify their investments and mainland companies emerging in new sectors such as new energy and environmental protection, electric vehicles, artificial intelligence, and biotech, Chan added.

Separately, HKEX appointed Lilian Cheng as group chief compliance officer yesterday.

In other news, Futu Securities said it launched Japanese stock trading services in Hong Kong, covering over 4,000 stocks and exchange-traded funds listed on the Tokyo Stock Exchange.