Hong Kong Exchanges and Clearing (HKEX) is set to further expand its closing auction session (CAS) to cover the trading of all equities and funds on its stock exchange.
CAS was developed as a trading platform by HKEX in July 2016 to increase trading turnover by permitting execution at securities’ closing prices.
The expansion, effective 8 October 2019, will affect all equities, such as depositary receipts, investment companies and stapled securities, and all funds, including exchange traded funds (ETFs) and real estate investment trusts.
It is expected to increase the number of securities covered by CAS from 700 to 2,600, which will still implement the existing CAS model.
However, the extension does not cover structured products, equity warrants and debt securities.
Wilfred Yiu, head of markets at HKEX, commented: “Since its launch three years ago, CAS has recorded robust volumes, helping meet the diverse trading needs of investors in our market.”
He added: “The expansion of CAS to all equities and funds will further improve trading liquidity at close, simplify trading operations of market participants, and standardise closing times for equities.”
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