Pre-Market Opening Period

Pre-Market Opening Period

The pre-market opening mechanism serves to determine an orderly market open and significantly enhances market effectivity. Through the Pre-Market Opening Interval, the calculated opening costs (COP) are established earlier than the market open with out matching orders. At current, the pre-market opening is simply out there for the buying and selling of Grasp-Seng Index-related futures contracts, HSCEI Index-related futures contracts, MSCI Taiwan Index-related futures contracts and Grasp Seng TECH Index futures contracts.

 

HKFE plans to boost the POS by introducing a random cutoff mechanism to the pre-opening session and the pre-open allocation session. This enhancement goals to discourage the doable gaming technique of manipulating the COP close to the tip of the public sale course of and in addition to encourage order enter at an earlier stage. To facilitate the random cutoff, the pre-opening session might be shortened by one minute whereas the pre-open allocation session might be prolonged by one minute. Will probably be utilized to the POS for each morning and afternoon classes of the relevant markets. Please seek advice from round for the brand new schedules of enhanced Pre-Market Opening Session.

 

Proposed Enhancement on Pre-Market Opening Session

 

Present Mechanism of Pre-Market Opening Session

Restrict orders carried ahead from earlier day can be thought-about as efficient and included within the COP calculation throughout the Pre-Market Opening Interval. The COP can be up to date constantly as soon as it’s decided. The pre-market opening mechanism doesn’t apply to mixture collection, together with commonplace mixture and tailored mixture collection. Subsequently no orders might be positioned on mixture collection throughout Pre-Market Opening Interval and current mixture orders wouldn’t be included within the COP calculation.

The Pre-Market Opening Interval contains of the next three buying and selling classes:

Session Product  Time Traits
Pre-Opening
  • MSCI Taiwan (USD) Index futures
  • MSCI Taiwan Internet Complete Return (USD) Index futures
  • MSCI Taiwan 25/50 (USD) Index futures
  • MSCI Taiwan 25/50 Internet Complete Return (USD) Index futures
  • Day Buying and selling Session: 
    8:30 a.m. – 8:41 a.m.
  • Settle for public sale orders, restrict orders and inactive orders

 

  • Orders could also be modified or cancelled
  • Each restrict orders and public sale orders can have an effect on the COP

 

 

  • Grasp-Seng Index futures
  • Mini-Grasp-Seng Index futures
  • HSCEI Index futures
  • Mini-HSCEI Index futures
  • Grasp Seng TECH Index Futures
  • Morning Session: 
    8:45 a.m. – 9:11 a.m.
  • Afternoon Session:
    12:30 p.m. – 12:56 p.m.
Pre-Open Allocation
  • MSCI Taiwan (USD) Index futures
  • MSCI Taiwan Internet Complete Return (USD) Index futures
  • MSCI Taiwan 25/50 (USD) Index futures
  • MSCI Taiwan 25/50 Internet Complete Return (USD) Index futures

  • Day Buying and selling Session: 
    8:41 a.m. – 8:43 a.m.
  • Settle for public sale orders and inactive orders

 

  • Order modification or cancellation in addition to activation of inactive orders are usually not allowed
  • Solely new public sale orders can have an effect on the COP

 

 

  • Grasp-Seng Index futures
  • Mini-Grasp-Seng Index futures
  • HSCEI Index futures
  • Mini-HSCEI Index futures
  • Grasp Seng TECH Index Futures
 

  • Morning Session: 
    9:11 a.m. – 9:13 a.m.
  • Afternoon Session:
    12:56 p.m. – 12:58 p.m.
Open Allocation
  • MSCI Taiwan (USD) Index futures
  • MSCI Taiwan Internet Complete Return (USD) Index futures
  • MSCI Taiwan 25/50 (USD) Index futures
  • MSCI Taiwan 25/50 Internet Complete Return (USD) Index futures
  • Day Buying and selling Session: 
    8:43 a.m. – 8:45 a.m.
  • No enter, modification or cancellation of lively public sale orders or restrict orders
  • Solely enter of inactive orders allowed
  • Orders might be matched in response to order kind, value and time precedence on the COP on the finish of the session
  • If COP exists, unmatched public sale orders might be transformed to restrict orders on the COP
  • If COP doesn’t exist, unmatched public sale orders might be transformed to restrict orders at greatest bid and ask costs
  • If COP doesn’t exist and no greatest bid and ask value out there, unmatched public sale orders might be inactivated and reside within the Central Orderbook 
  • Customers can’t change or delete orders throughout the 2-minute Open Allocation session
 

  • Grasp-Seng Index futures
  • Mini-Grasp-Seng Index futures
  • HSCEI Index futures
  • Mini-HSCEI Index futures
  • Grasp Seng TECH Index Futures
 

  • Morning Session:
     9:13 a.m. – 9:15 a.m.
  • Afternoon Session: 
    12:58 p.m. – 1:00 p.m.

Calculation of COP

The COP is calculated each time an order is positioned out there and will probably be displayed within the “EP” column of the Worth Info Window. The COP is calculated in response to the principles outlined beneath:

  1. The COP can’t fall outdoors the most effective bid and provide of unfilled orders, although it may be equal to the bid or provide;
  2. If multiple value fulfill guidelines 1 above, the COP would be the value with the variety of matched contracts is maximized;
  3. If multiple value fulfill the principles 1 & 2 above, the COP would be the value at which the traditional order imbalance is the bottom;
  4. If multiple value fulfill the principles 1 – three above, the COP would be the value at which the related crossed qty is the best;
  5. If multiple value fulfill 1 – four above, the COP would be the value closest to the settlement value of earlier buying and selling part;
  6. If multiple value fulfill 1 – 5 above or if no settlement value is outlined, the best value might be chosen.

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