China Fund News reporter Guo Minjun
On 18 April, Hong Kong Exchanges and Clearing Limited (HKEX) announced that it will develop the Orion Derivatives Platform (ODP) to provide better trading, clearing and risk management solutions to customers around the world, thereby enhancing the Group's competitiveness as a global exchange.
The ODP will support close to 24-hour trading
It is expected to be launched in 2028
It is reported that the new platform, developed in-house by HKEX's technical team, is expected to be launched in 2028 and will help HKEX stand out in the global derivatives market.
The ODP will be built in a modular manner to facilitate the addition of new products, the enhancement of the microstructure of the market and the introduction of other functions in the future. ODP will provide customers with better trading and settlement capabilities, including support for nearly 24-hour trading, new order types, an interface designed to meet the needs of the industry, and a better testing and connectivity experience. In addition, the new platform also provides capital-efficient risk management tools, such as the use of a value-at-risk (VaR) model, to align with the practice of the international settlement market.
In 2022, HKEX introduced VaR margin calculation in the securities market, which is clearer and more efficient than the previous approach to assessing risk exposure. When HKEX launches the ODP, it will also adopt the VaR model in the derivatives market to further reduce market transaction costs while maintaining robust risk management.
HKEX will work closely with market participants during the development of the platform. Future system migrations will take place in phases to ensure a smooth transition. Currently, the development of the ODP is still ongoing.
Chan Yee Ting: ODP is a major investment to promote the development of the Hong Kong market
Editor: Huang Mei
Review: Muyu