HK regulator outlines plans for extended trading hours, tokenisation
Hong Kong's securities regulator says extended trading hours will first apply to derivatives, helping investors respond to global markets. The bourse will issue a consultation paper this quarter on extending cash market trading. Other measures include tokenised money and digital Hong Kong dollar set
Hong Kong's Securities and Futures Commission (SFC) chief executive officer, Diana Ng, said on 9 October that extending trading hours would first be implemented in the derivatives market, helping investors respond promptly to fast-changing global markets across different time zones and ensuring the city maintains its competitive edge.
Speaking at a forum organised by the Asia Securities Industry and Financial Markets Association, Ng said the Hong Kong Exchange (HKEX) would issue a consultation paper this quarter on extending trading hours for the cash market.
In the longer term, Ng said the policy of extended trading hours would be complemented by other innovative measures expected to be implemented, such as tokenised money and digital Hong Kong dollar settlement arrangements. These measures, she said, would allow investors greater flexibility to adjust their positions and manage risks in response to the latest market information.
Ng also said the SFC is working to improve the efficiency of the collateral framework. A key next step will be to work with HKEX to promote cross-clearing house margin netting arrangements, which would release funds and improve efficiency while keeping risks under control.
In addition, the SFC will optimise operational arrangements for non-cash collateral. Hong Kong's OTC Clear will streamline processes to promote same-day settlement of bond deposits, aiming to launch this within the year, making non-cash collateral a more attractive financing tool and lowering funding costs without weakening risk management standards.