HKEX to launch near 24h derivatives trading platform by 2028

Rick Steves

“The launch of ODP will strengthen HKEX’s capability to support the needs of global investors, and cement Hong Kong’s leading position as Asia’s risk management centre and an international financial centre.”

Hong Kong Exchanges and Clearing Limited is going forward with the development of the Orion Derivatives Platform (ODP). Built in-house and with an expected launch in 2028, ODP will help differentiate HKEX’s derivatives offerings and elevate its competitiveness in the global derivatives marketplace.

ODP will be designed to enhance trading, clearing, and risk management capabilities of the derivatives products and services offered by HKEX. Enhancements will include the potential of near 24-hour trading, additional order types, an industry-standard interface, as well as an enhanced testing and onboarding experience.

It will also incorporate capital efficient risk management tools, such as the Value-at-Risk (VaR) model, to align clearing capitalization methods with international practices and help further reduce the costs of trading whilst ensuring robust risk management.  The VaR margining methodology was successfully implemented in HKEX’s cash market in 2022.

Derivatives are one of the fastest-growing segments of HKEX

Bonnie Y Chan, CEO of HKEX, said: “Building future-ready technology platforms and operations is a key strategic priority for HKEX, as we help our markets and participants deliver long-term, sustainable growth and development. We are therefore pleased to announce plans to develop the Orion Derivatives Platform, representing our significant investment into the future of our markets. Derivatives are one of the fastest-growing segments of HKEX’s diverse business, achieving record-breaking volumes in both 2023 and 2022. Developing an in-house platform that is adaptable, efficient, and scalable, would give us a unique competitive advantage in the global derivatives space. The launch of ODP will strengthen HKEX’s capability to support the needs of global investors, and cement Hong Kong’s leading position as Asia’s risk management centre and an international financial centre.”

Richard Leung, Chief Information Officer, HKEX, added: “HKEX is fully committed to driving innovation in our markets through the development of best-in-class technology platforms, and the launch of the ODP project underscores this ongoing strategic commitment. From listing digitalisation to the FINI IPO settlement platform, from the OTP-C system for our cash market to the LME Select platform for the London Metal Exchange, we have proven ourselves with the capabilities and experience to build platforms and solutions that are fit for purpose, addressing the needs of our global clients. We look forward to bringing all stakeholders on this exciting journey to own our digital destiny, and positioning HKEX and Hong Kong’s financial markets for the future.”

The platform will be built on a modular architecture, making it easier to introduce new products, enhance microstructure, and add new capabilities to the market. The system migration will be carried out in a phased approach to ensure a smooth transition. The development of ODP is ongoing, with market rollout expected in 2028.

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