OM software blamed for Hong Kong exchange failure

OM software blamed for Hong Kong exchange failure

A software bug in the technology supplied by Swedish vendor OM was responsible for the failure of the Hong Kong Futures Automated Trading System last week.

The system shutdown resulted from a complex order combination which sent the OM-supplied software into an infinite loop, says Hong Kong Exchanges and Clearing (HKEx).

OM is currently working on a fix that will be installed as soon as the required testing and verification process has been complete. In the interim, HKEx says it will restrict trading of certain predefined futures calendar spreads - the combo orders that caused the last breakdown - in order to minimise the possibility of similar malfunctions.

In a statement, the Exchange says: "Given the relatively small volume of trading in back-month calendar spreads, HKEx believes the impact of the temporary restrictions on the market and Exchange participants will be minimal."

Last year, a dud battery in a back-up trading system shut down the futures market for an hour following a power failure on the main system.

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