As announced on Wednesday 27 April, the Hong Kong Mercantile Exchange ("HKMEx") received authorisation from the Securities and Futures Commission to operate as an automated trading services ("ATS") provider. Trading on the exchange began on 18 May 2011.
The ATS authorisation grants HKMEx the right to offer market participants, through its member firms, the use of its state-of-the-art electronic platform to trade commodities. The Exchange began trading with 16 members including some of the world's largest financial institutions and trading firms as well as several well-established brokerages in Hong Kong.
HKMEx deploys a white-labelled version of Patsystems' market-leading front-end trading application, J-Trader, to its customers. The front-end, white-labelled as Pearl Plus, offers advanced functionality including multi-exchange spreading and one-click scalping, real-time P&L and protection of orders with trailing stops and brackets. Pearl Plus can be easily deployed to customers over the Internet, WAN, LAN, or leased lines.
Pearl Plus provides HKMEx customers with an advanced yet easy to use application for trading the new HKMEx contracts. Initially, HKMEx is offering a 32 oz (1 Kilo) gold futures contract with physical delivery in Hong Kong. Contracts months offered by the HKMEx Gold contract are three prompt months plus additional even months over the following year. HKMEx trading hours are between 0800-2300 HKT, allowing for overlap with the trading hours of major global commodities markets.
Patsystems also provides direct connectivity to HKMEx, allowing customers to access the exchange through Patsystems API or via Patsystems front-end trading platforms, J-Trader and Pro-Mark. In addition to the Hong Kong Mercantile Exchange, Patsystems provides connectivity to over 60 exchanges worldwide, allowing customers to take advantage of global trends and cross-exchange spreading opportunities.
Barry White, Regional Director for Patsystems Asia, said: "As a key technology partner of the Hong Kong Mercantile Exchange, we are thrilled to see the exchange officially live for trading. By leveraging Patsystems' versatile and easy-to-deploy front-end technology, the exchange ensures custtomers are up and running in minimal time."