HKEX expects to launch a trading, clearing and risk management solution for derivatives in 2028.
The Orion Derivatives Platform (ODP) will allow the exchange to provide near 24-hour derivatives trading and improve efficiency, HKEX said.
Using a modular architecture, the exchange will be able to introduce a wider range of products, it stated. The platform will offer additional order types, an industry-standard interface and enhanced testing and onboarding services.
The value-at-risk (VAR) model implemented in HKEX’s cash market in 2022 will be included in the platform, allowing users to reduce their trading costs and efficiently assess risk exposures using a clearing capitalisation model aligned with international practices.
The platform will be introduced with a phased approach, the exchange indicated, following engagement with market participants during the development process.
Bonnie Chan, HKEX CEO, commented: “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, group chief information officer at 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.”
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