Hong Kong Exchanges and Clearing Limited (HKEx) is a leading global operator of exchanges and clearing houses based in Hong Kong and one of the world’s largest exchange groups by market capitalization. HKEx operates the securities and derivatives markets and their related clearing houses and is the regulator of listed companies in Hong Kong. To increase competitiveness and meet the challenges of a global market, the Stock Exchange of Hong Kong Limited (SEHK) and Hong Kong Futures Exchange Limited (HKFE), together with Hong Kong Securities Clearing Company Limited (HKSCC), merged under a single holding company, HKEx.
HKEx Exchange API
TT® supports the following:
- Prices: OMD-D Full Tick
- Orders: OAPI
Matching Algorithm
The algorithm for ranking and matching orders received is based firstly on the best price (i.e., highest bid and lowest ask have the highest priority), and secondly on the time the order is received in HKATS. Quotes from Market Makers are also subject to the same ranking, matching, and pricing methodologies. The HKEx matching engine is located in Hong Kong.
Available Products
TT supports all futures and options products available for trading through the HKEx Derivatives Trading System (HKATS).
For a complete list of products, refer to the HKEx website.
For the latest list of products available for the T+1 (After Hours Trading) session refer to After-Hours Futures Trading.
Supported Exchange Functionality
TT supports the following HKEx functionality:
- Wholesale orders:
- T1: Internal Trade — Orders where the bid-side Participant and an ask-side Participant are set within the same order message. Both sides of the order are then execute as a cross order.
- T2: Combo (Internal Strategy) — A single order with multiple instrument legs. However, a user-defined strategy is not created at the exchange.
- T4: Interbank Trade — Orders that are only posted to the Participant listed as the order’s counterparty. Interbank trades are only executed after the counterparty submits a matching order.
- Aggregate and Detailed market depth
- Tailor-Made Combinations
- Trade Report Combo (Wholesale)
- Give Up handling
- Inactivated order handling
- Fill and order recovery
- RFQ
- Indicative price/quantity during Pre-Open prior to an Auction
- Exchange-provided implied prices
Unsupported Exchange Functionality
The following HKEx functionality is not supported:
- Open interest
- Post-trade processing
- Enhanced Limit and Special Limit orders
Trading states
The following table shows HKEx trading states on TT:
| Trading State and Session | Description |
|---|---|
| Pre-Open – T Session (day or afternoon) | Includes open allocation, pre-open, and pre-open allocation market states. |
| Open – All (T, T + 1) | Includes markets tradable in the T and T + 1 sessions, markets enabled with price limit control, and markets enabled with dynamic price banding. |
| Close – All (T, T + 1) | In this state, all markets are closed. |
| Freeze – T Session (day or afternoon) | All markets are paused for trading. |
| Freeze – T + 1 | Due to Trading Halt Mechanism, trading is halted for the following Equity Index Options products:
|
HKEx Trading Sessions
HKEx offers two trading sessions: the T session (day and afternoon) and T+1 session (night), which is for after hours trading (AHT) at the exchange. Support for AHT can configured per HKEx connection in Setup. For more details about configuring your connection for the T session and T+1 (AHT) session, refer to Adding an HKEx connection.
Trading Hours
HKEx offers different trading hours for their securities and derivatives markets. Trading hours for derivatives vary by contract. The table below shows the earliest start and latest end times for the T and T+1 derivatives trading sessions.
|
Session |
Hours (HK time) |
|---|---|
|
T Session (Day and Afternoon) |
8:30 AM—5:00 PM |
|
T + 1 Session (Night) |
5:00 PM—11:45 PM (1 AM for mini-LME products) |
|
T + 1 Session (Night) Equity Index Futures and Options |
5:15 PM—3:00 AM |
| Notes The trading hours are subject to change at any time. For the most current information, please contact the Exchange or visit their website for trading hours. | |
Trading Halt Mechanism
TT supports the exchange’s Trading Halt Mechanism (THM) for the following Equity Index Options products.
- Hang Seng Index Options (HSI)
- Hang Seng China Enterprise Index Options (HHI)
- Mini-Hang Seng Index Options (MHI)
The THM occurs at the exchange when the highest bid of the corresponding futures contract is a THM percentage above its upper price limit, or when the lowest ask is a THM percentage below the futures contract’s lower price limit.
If a THM occurs, trading of the impacted Equity Index Options contract will be suspended for the remaining T+1 session, and will resume at the beginning of the following T session.
During the Freeze state, orders for the suspended Equity Options Index contract remain at the exchange, but will not be matched. For the suspended orders, users can can change the following:
- Order quantity
- Text fields
- TIF order restriction
HKEX Self-Match Prevention
In addition to the exchange’s participant level Self-Match Prevention functionality, TT supports the exchange’s Self-Match Prevention token functionality. When Self-Match Prevention is enabled at the exchange and a Self-Match Prevention token is provided, users with the token will not be able to submit matching orders.
To take advantage of the HKEX SMP ID functionality, you must submit to the exchange a Self-Match Prevention (SMP) ID Information Update Form. Use the SMP ID / SMP Token provided by the exchange, and key that value into the “Self-Match Prevention ID” field in Setup under Accounts → HKEX → Exchange Properties.
Note When Self-Match Prevention is enabled, users with the same Participant ID are still allowed to self-match as long as their assigned Self-Match Prevention tokens are different. If user-level Self-Match Prevention is implemented by your firm but no tokens are assigned, the exchange still allows self trading for users with the same Participant ID.In Setup, the Self-Match Prevention token is set per account. Refer to Adding an HKEX Account for more details.
Self-Match Prevention for FIX Order Routing
For FIX Order Routing users, the value keyed into the “Self-Match Prevention ID” field will be sent out in Tag 7928. Tag 7928 can also be specified directly in the FIX NewOrderSingle message when the “Self-Match Prevention ID” field in Setup is set to Client Can Override = True.
Self-Match Prevention Instruction (Cancel Aggressive or Cancel Passive)
When submitting the Self-Match Prevention (SMP) ID Information Update Form, applicants should specify whether the ID should use the Cancel Aggressive SMP Instruction or the Cancel Passive SMP Instruction. Cancel Aggressive SMP Instruction is the only option for the Participant ID. Customers who want a choice between Cancel Aggressive SMP Instruction or the Cancel Passive SMP must use the SMP ID / SMP Token option. SMP Instruction is set on the exchange side and is permanent once the SMP ID is created. The exchange does not allow users to specify SMP Instruction during order entry.
Connectivity Options
The TT® platform provides connectivity to the exchange, so you do not have to contact the exchange regarding connectivity options. Refer to TT Access for more details about your connectivity options for connecting to TT.