On Apr. 25, 2025, HKEX said optional E2E test session will be conducted from May 26, 2025 to Jun. 6, 2025 to support smooth transition; registration for test is not required.
EPs, broker supplied systems (BSS) vendors are strongly encouraged to participate in E2E test session to verify system changes related to the minimum spreads reduction.
HKEX Orion market data platform – securities market (OMD-C) will also be available for testing during same period, with detailed arrangements given in separate notice.
Reminded of mandatory MR that will be arranged upon completion of E2E test session.
On Jun. 28, HKEX proposed reducing minimum bid-ask spreads.
HKEX issued consultation paper titled Proposed reduction of minimum spreads in the Hong Kong securities market, regarding proposal to reduce minimum bid-ask spreads.
In addition, HKEX published an accompanying questionnaire to submit responses.
Proposed phased implementation of minimum spread reduction by selected price band.
The proposed changes will cover equities, REITs, equity warrants but exclude exchange traded products, structured products, exchange traded options and debt securities.
Phase 1 will see a 50% to 60% reduction of minimum spreads for price bands between HKD 10 and HKD 50; phase 2, a 50% reduction of minimum spread for price band HKD 0.5 - HKD 10; feedback is sought from market participants on the proposal.
Including exchange participants, broker system vendors, data vendors and investors.
Consultation End
The consultation period will be closed on Sep. 20, 2024.
Dec. 2024 Implementation Plans
On Dec. 17, 2024, HKEX published conclusions re the above-mentioned consultation paper on proposed reduction of minimum spreads in the Hong Kong securities market.
Implementation will occur in two phases subject to market readiness, reg approvals.
Phase 1 planned for mid-2025, phase 2 likely mid-2026 pending a six-month review.
Feb. 2025 Change of Fee Structure
On Feb. 21, 2025, HKEX said it is planning to restructure the stock settlement fee to support the reduction of minimum spreads in the Hong Kong securities market.
To create more equitable market by ensuring fees are consistent across all trade sizes.
Will increase the rate to 0.0042% while removing minimum, maximum fee boundaries.
Crossed exchange trades, where same participant handles buy and sell orders, will be replaced with a higher rate of 0.0021%, without any minimum or maximum fee limits.
For market-making transactions in exchange-traded products (ETPs), exchange trades will be charged 0.0020%, and crossed exchange trades will be subject to 0.0010% fee.
Settlement instruction transactions will remain unchanged, continuing at 0.0020% fee.
The new stock settlement fee structure is set to take effect in Jun. 2025.
Mar. 7, 2025 Implementation of Phase 1
On Mar. 7, 2025, HKEX issued a circular regarding the implementation of phase 1.
Optional, free end-to-end (E2E) test session in May 2025 allows exchange participants (EPs) to test changes to spread table, quotation rules, subject to regulatory approval.
Mandatory market rehearsal (MR) in Jun. 2025 to ensure all EPs confirm readiness.
Updated interface specifications for Orion market data platform – securities market (OMD-C), Mainland market data hub (MMDH) are made available on the HKEX website.
Mar. 24, 2025 Technical Update, FAQ
On Mar. 24, 2025, HKEX made technical update to spread table codes in Orion market data platform – securitiesmarket and Mainland market data hub – securities market.
HKEX also reminded EPs to consult updated FAQ for detailed guidance; EPs should review internal systems, make any necessary adjustments to accommodate changes.
Apr. 2025 Optional End-to-End Test and Reminder
On Apr. 25, 2025, HKEX said optional E2E test session will be conducted from May 26, 2025 to Jun. 6, 2025 to support smooth transition; registration for test is not required.
EPs, broker supplied systems (BSS) vendors are strongly encouraged to participate in E2E test session to verify system changes related to the minimum spreads reduction.
HKEX Orion market data platform – securities market (OMD-C) will also be available for testing during same period, with detailed arrangements given in separate notice.
Reminded of mandatory MR that will be arranged upon completion of E2E test session.
