FW: Reminder - Launch of HKEX Closing Auction Session (CAS)
Ye Tian (James)
9am – 9.30am (pre-open)
Continuous Trading Session
9.30am – 12pm (morning session)
12pm – 1pm (market break)
1pm – 4pm (afternoon session)
*New*
Closing Auction Session (CAS)
4pm – 4:01pm (Reference Price Fixing Period)
4:01pm – 4:06pm (Order Input Period)
4:06pm – 4:09pm (No Cancellation Period)
4:08pm – 4:10pm (Random Closing Period)
What is Closing Auction Session?
The Closing Auction Session is a market structure change implemented by the HKEX. During the session, market participants interested in trading at the closing price may input buy and sell orders. These orders will interact with each other to form a consensus closing price for each security and orders are executed at that price. The CAS commences immediately after the Continuous Trading Session and will last for about 8 to 10 minutes.
Phase 1 will be launched on 25 July 2016 and is applicable to:
· Hang Seng Composite LargeCap Index and Hang Seng Composite MidCap index constituent stocks;
· H shares which have corresponding A shares listed on the exchanges in Mainland China; and
· all ETFs.
The finalised list of the Phase 1 CAS securities can be found on the HKEX website here. Subject to a review of Phase 1 by HKEX and approval by the Securities and Futures Commission, Phase 2 will tentatively include all equity securities and funds not covered in Phase 1. For more information, please refer to HKEX’s CAS microsite , website and FAQ.
How do clients submit orders for Closing Auction Session on iOCBC?
Open orders from Continuous Trading Session will automatically carry over into CAS if order price is within price limit. Clients can also submit the following order types to participate during CAS.
· At-auction;
· At-auction Limit; and
· Limit (will be automatically converted to At-auction Limit order by iOCBC)
· Enhanced Limit (will be automatically converted to At-auction Limit order by iOCBC).