Hong Kong financial regulators are set to put forward proposed enhancements in the trading unit system – the so-called “board lot” system – within this year, in a bid to meet more investment needs, says Financial Secretary Paul Chan Mo-po.
Chan revealed Hong Kong Exchanges and Clearing (0388) and the Securities and Futures Commission will improve the system to unveil trading arrangements that better meet liquidity characteristics of shares of different sizes and investment needs, enhancing trading and improving efficiency.
This supports the goal of implementing a reduction in minimum price spreads by the middle of this year.
Reforms to the trading mechanism such as introducing new functions to HKEX’s post-trade system as well as conducting system upgrades will also be launched.
The bourse operator aims to ensure technical compatibility with the T+1 settlement cycle by the end of this year, Chan said.
CICI CAO
