Chatroom - Hong Kong Exchanges and Clearing Limited
Chatroom - Hong Kong Exchanges and Clearing Limited
Chatroom - Hong Kong Exchanges and Clearing Limited
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Competitive Market Infrastructure<br />
is a Top Priority<br />
The HKEx Strategic Plan 2010-2012 calls for investment in IT infrastructure to maintain a competitive edge<br />
regionally, meet emerging expectations of dem<strong>and</strong>ing customers <strong>and</strong> position HKEx to capture longer term growth<br />
opportunities. A major trading system upgrade was completed in December 2011. Additional projects are in<br />
progress to replace the existing network infrastructure <strong>and</strong> market data systems. To prepare for an anticipated<br />
increase in data traffic, HKEx will migrate its existing SDNet/1 network to SDNet/2 in three phases, with the first<br />
phase to complete in the third quarter of 2012. In 2013, the Next Generation Market Data System (NGMDS) will<br />
be rolled out to support higher system capacity, provide new market data products <strong>and</strong> equip HKEx to build a<br />
distribution footprint on the Mainl<strong>and</strong>. The following articles provide additional information on the trading system<br />
upgrade <strong>and</strong> the SDNet/2 <strong>and</strong> NGMDS projects.<br />
Upgrades Increase Speed of<br />
Two Key Securities Market Systems<br />
HKEx rolled out its<br />
upgraded securities<br />
trading system, AMS/3.8,<br />
<strong>and</strong> securities market data<br />
dissemination system,<br />
MDS/3.8, on<br />
5 December 2011.<br />
10 Exchange • January 2012<br />
As a result of the upgrade, the trading system’s order processing capacity<br />
has been increased by about 10-fold to 30,000 orders per second, which<br />
can be further scaled up to at least 150,000 orders per second through<br />
hardware additions if the need arises. In addition, trading system latency<br />
has been reduced to 2 milliseconds on an average trading day, about 70<br />
times faster than before. Between the launch of AMS/3.8 in early December<br />
2011 <strong>and</strong> the end of the month, the average host processing latency was<br />
around 1.5 milliseconds.<br />
Enhanced market transparency is one of the other benefits of the upgrade,<br />
as AMS/3.8 <strong>and</strong> MDS/3.8 disseminate the 10 best price levels compared<br />
to the five best price levels before the upgrade. The market data broadcast<br />
rate has been increased as well, doubling from 1,000 to 2,000 stock<br />
page updates per second, <strong>and</strong> some legacy system functions have been<br />
streamlined to help improve the operating efficiency of Stock Exchange<br />
Participants.
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