Find out more at btsub.sg/btdeal
You are here
Hong Kong bourse set to re-introduce closing auction on July 25
[HONG KONG] Hong Kong Exchanges & Clearing (HKEx) has scheduled the re-introduction of a closing auction for July 25, three individuals briefed by the exchange told Reuters, in a long-awaited development that will bring the bourse in line with its international peers.
The HKEx proposed re-introducing a closing auction, a common mechanism used to reduce volatility at the end of a trading session, in January 2015, but did not give guidance on when it would be implemented.
The HKEx first launched a closing auction in May 2008 but scrapped it 10 months later after design flaws actually exacerbated price swings, leading to fears it was being manipulated.
Since then, international investors have campaigned for the HKEx to re-introduce a revised closing auction, saying it was critical for Hong Kong's status as a financial centre.
The HKEx began testing the closing auction in February, with market rehearsals for the auction and some other new volatility controls scheduled for May to June, a spokesman for the HKEx said, adding that further details on timings "will be announced in due course".