Tue, Nov 23, 2010 - Page 11 News List

Hong Kong stock exchange to extend trading hours

Bloomberg

Hong Kong Exchanges & Clearing Ltd, operator of Asia’s third-largest stock market, said it will extend its trading hours from March 7 next year.

The territory’s stock market will trade from 9:30am until noon and the afternoon session will run from 1:30pm until 4pm. That compares with the current 10am to 12:30pm and 2:30pm to 4pm sessions.

Trading hours will be further extended, with the lunch break being cut further to one hour from one-and-a-half hours from March 5, 2012, the bourse said in an e-mailed statement.

From that date, markets will reopen after the lunch break at 1pm, according to the statement sent after a meeting of the exchange’s board members yesterday.

Charles Li (李小加), CEO of Hong Kong’s exchange operator, had said earlier that the change in trading hours was crucial as Hong Kong looks to become an offshore trading center for China’s yuan.

Meanwhile, South Korea will enhance disclosure of computer-driven transactions after stocks tumbled the most in more than five months on Nov. 11 when Deutsche Bank AG missed a reporting deadline.

The Financial Services Commission will also study measures by banks and brokerages to manage risks of derivatives trading, Cho In-kang, director-general of the commission’s capital markets division, said at a briefing in Seoul yesterday.

“We will improve the rules on settlement related to program trades,” Cho said.

The regulator will review the so-called “sunshine rule,” that requires institutions to report their program trades 5 minutes, 15 minutes and 45 minutes before the market closes, he said.

The bourse investigated trading after the benchmark KOSPI dropped 48 points to 1,914.73 between 2:59pm and 3:01pm on Nov. 11.

Deutsche Bank that day filed a report on computer-driven trades a minute late, Um Se-yong, director of the Korea Exchange’s examination department, said on Monday last week.

The South Korean regulator will coordinate its investigation with counterparts in other markets, Cho said yesterday, without naming other countries.

Sell orders that caused a plunge on the KOSPI on Nov. 11 were made through Deutsche Bank’s London office, MoneyToday reported on Monday last week, citing an unidentified industry official.

The regulators were still investigating whether the order was for Deutsche Bank itself or for its clients, the report said.

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