HKEX provides market data through its data dissemination entity, HKEX Information Services Limited. HKEX also owns the London Metal Exchange, which has a dominant global position in base metals trading. The Hong Kong Government is the single largest shareholder in HKEX, and has the right to appoint six of hong kong stock market thirteen directors to the Board. Reports of securities trading in Hong Kong date back to the mid-19th century.
However, the first formal market, the Association of Stockbrokers in Hong Kong, was not established until 1891. The Association was renamed the Hong Kong Stock Exchange in 1914. A second exchange, the Hong Kong Stockbrokers’ Association was incorporated in 1921. The two exchanges merged to form the Hong Kong Stock Exchange in 1947 and re-establish the stock market after the Second World War.
Pressure to strengthen market regulation and to unify the four exchanges led to the incorporation of SEHK, the Stock Exchange of Hong Kong Limited in 1980. The four exchanges ceased business on 27 March 1986 and the new exchange commenced trading through a computer-assisted system on 2 April 1986. Prior to the completion of the merger with HKFE in March 2000, the unified stock exchange had 570 participant organisations. Hong Kong Securities Clearing Company Limited was incorporated in 1989. It created CCASS, the central clearing and settlement system, which started operating in 1992 and became the central counterparty for all CCASS participants. The clearing operation is based on the immobilisation of share certificates in a central depository. Share settlement is on a continuous net settlement basis by electronic book entry to participants’ stock accounts in CCASS.
The main products traded on the commodity exchange were cotton futures, sugar futures, soybean futures and gold futures. HKFE launched on 6 May 1986 its flagship product, the HSI Futures, which is still its most popular futures product in HKEX’s derivatives markets today. HKFE provides efficient and diversified markets for trading futures and options contracts by its more than 160 participant organisations, including many that are affiliated to international financial institutions. The derivatives market under HKEX trades a broad range of products, including equity index, stock and interest rate. HKEX and its subsidiary companies, HKFE Clearing Corporation Limited and SEHK Options Clearing House Limited, operate rigorous risk management system which enables participants and their clients to meet their investment and hedging needs in a liquid and well-regulated market place.
HKEX in May 2012 for the purpose of acting as the clearing house for OTC derivatives in Hong Kong. OTC Clear started offering OTC derivatives clearing services in November 2013. OTC Clear created OCASS, the OTC Clearing and Settlement System, for OTC Derivatives clearing and became the central counterparty for all clearing members. OTC Clear is currently providing clearing and settlement services interest rate swaps and non-deliverable forward products. The acquisition was completed in December 2012.