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TRANSCRIPT
Vendor Seminar
5 June 2014
For HKEx Real-time Vendors and End-Users Only
Agenda
Part 1
OMD Updates
By Karen Lam
Vendor Support and Data Management, Market Data
Global Markets Division
Part 2
Upcoming Initiatives
By Karen Lam
Vendor Support and Data Management, Market Data
Global Markets Division
Part 3
Business Updates
By Winnie Sin
Sales and Marketing, Market Data
Global Markets Division
Part 4
Q&A
2
3
OMD Project Overall Status
Q3 2013
OMD-C Rollout
30 Sep 2013
MDF*
Retired
MDF3.8
Retired
All MDF* clients
migrated to OMD-C
on 1 Nov 2013
All MDF 3.8 clients
migrated to OMD-C
on 31 Mar 2014
30 Oct 2013 31 Mar 2014
Parallel run
Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014
MMDH Rollout
3 Mar 2014
PRS+
Retired
PRS
Retired
1 month
Parallel run
3 months
Parallel
run Parallel
run
OMD-D
Launch
(Planned)
Remarks: Parallel run refers to parallel run of HKEx’s new and legacy market data systems, but not parallel run eligible for clients’ end .
The latter is subject to the arrangement for different batches
OMD-D
- On Boarding Activities
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Close of Readiness Test
Declaration of Readiness
Production Line Installation
Briefing Session on Market Rehearsal
Shakedown Connectivity Test
Market Rehearsals
Post Release Test and Rollout
PRS Plus Phase Out
PRS Phase Out
Jun 2014 Jul 2014 Aug 2014 Sep 2014 Oct 2014 Nov 2014 Dec 2014
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Clients to plan ahead and liaise with their network provider for production line configuration / installation
Reminder: Clients are required to use dedicated SDNet lines for OMD-D at initial rollout. Merging SDNet lines with other production systems will only be arranged
after the OMD-D stabilisation period.
OMD-D
- Bandwidth Requirement (Update)
Datafeed Previous Estimated Bandwidth up to 2015
Revised Estimated Bandwidth up to 2014
Revised Estimated Bandwidth up to 2015
Non-SOM SOM Total Non-SOM SOM Total Non-SOM SOM Total
Derivatives Standard (“DS”)
4M 19M 23M 5M 10M 15M 10M 16M 26M
Derivatives Premium (“DP”)
7M 40M 47M 9M 16M 25M 19M 27M 46M
Derivatives FullTick (“DF”)
6M 34M 40M 7M 12M 19M 14M 20M 34M
Bandwidth requirement is updated to reflect the latest business projection up to 2014 / 2015:
Production throughput will be monitored after OMD-D rollout and sufficient advance notice should be given if the bandwidth requirements need to be adjusted
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OMD Technical Updates
- Production Contingency
OMD has built in high availability and capability of handling component failure without disrupting trading.
Failure Scenario System Behaviour Client Action
Internal Process Failure Nearly transparent but on completion of internal failover OMD may resend messages which have been sent before the occurrence of the failure e.g. Trade Tickers (OMD-C); EAS / Trade Statistics / Series Statistics (OMD-D)
Ignore resent messages
Site Failure Stoppage in real-time and refresh data transmission and disconnection from Retransmission service; Sequence Reset messages will be sent from the backup site upon the completion of site failover which may take 5 minutes only at the fastest
Detect system failure and attempt to connect to the backup site so that operation can be resumed shortly
Intra-day System Restart All services in both OMD primary and backup sites will be shut down and then restarted. Exchange will make announcement
Clear cached data and reconnect to the system upon notification from HKEx-IS that system has been restarted
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Agenda
Part 1
OMD Updates
By Karen Lam
Vendor Support and Data Management, Market Data
Global Markets Division
Part 2
Upcoming Initiatives
By Karen Lam
Vendor Support and Data Management, Market Data
Global Markets Division
Part 3
Business Updates
By Winnie Sin
Sales and Marketing, Market Data
Global Markets Division
Part 4
Q&A
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8
Upcoming Exchange Initiatives in 2014
Upcoming Initiatives
Market Product Initiatives Tentative Schedule
Securities Index Dissemination of a new third party index via OMD Index Feed
Market rehearsal : 21 Jun 2014 Effective: Early Jul 2014
Securities Equities Shanghai Hong Kong Stock Connect
Late 2014
Derivatives Stock Index Futures & RMB Currency Futures
Extension of after hour trading to 11:45 pm
Simulation Test: Aug 2014 Effective : 3 Nov 2014
Derivatives Asia Commodities Introduction of : London Aluminium Mini Futures, London Zinc Mini Futures, London Copper Mini Futures, and API 8 Thermal Coal Futures. Trading until 1:00 am (subject to regulatory approval)
Later in 2014
Agenda
Part 1
OMD Updates
By Karen Lam
Vendor Support and Data Management, Market Data
Global Markets Division
Part 2
Upcoming Initiatives
By Karen Lam
Vendor Support and Data Management, Market Data
Global Markets Division
Part 3
Business Updates
By Winnie Sin
Sales and Marketing, Market Data
Global Markets Division
Part 4
Q&A
9
Content
OMD-D Business Related Issues 1
Marketing Programme for Asia Commodities and New Derivatives Products 2
New Policies to Meet Market Needs 3
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OMD-D FullTick Vendor Incentive Programme
OMD Derivatives FullTick Vendor Incentive Programme
Programme Duration From OMD-D Rollout Date to 31 Dec 2015
Eligibility Criteria
An eligible IV shall
(i) subscribe for Derivatives FullTick (DF) feed; and
(ii) redistribute DF feed only to EPs and only for internal use*
*In other words, an eligible IV could NOT redistribute DF feed to
(a) EPs for external distribution (as indirect vendor); or (b) non-EPs
Benefits Waiver on Redistribution Fees ($37,950 per quarter) for
eligible IVs
Objectives
Programme
Details
• With the rollout of Genium Central Gateway (CG), more EPs will source derivatives
data from OMD-D
• While EPs can currently source order depth information (MQ7) via HKATS OAPI,
there is a higher bandwidth requirement for OMD Derivatives FullTick (DF) feed
• To this end, we aim to facilitate EPs’ access to OMD-D order depth data by
encouraging IVs to offer a lower bandwidth solution while redistributing the DF feed
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1. Waiver on Licence Fee and Connection Fee
• End User Licence Fee and Connection Fee will be waived for EPs using HKATS Central
Gateway (for first 2 sets of Derivatives Standard connections only)
2. Waiver on Individual User Fees for Display EP in-house terminals/workstations
• Similar to the arrangement in Securities Market, EPs using HKATS Central Gateway are entitled
to 2 free terminals per EP for display usage.
HKATS Central Gateway : Market Data Arrangement for EPs
EPs who migrate to HKATS Central Gateway but wish to obtain real-time derivatives
market data directly from HKEx for internal use are required to obtain the Market Data
End User Licence. However, HKEx will waive certain fees under the Market Data End
User Licence:
Please note that EPs are required to obtain the Market Data Vendor Licence should they
wish to redistribute derivatives market data externally to its clients and will be subject to
relevant Subscriber Fees.
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Content
OMD-D Business Related Issues 1
Marketing Programme for Asia Commodities and New Derivatives Products 2
New Policies to Meet Market Needs 3
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Current Marketing Programme for
New Derivatives Products
Programme Duration 2 years (from Sep 2013 – Dec 2015)
Regions Covered Mainland China, Japan, Korea, Singapore, Taiwan
Redistribution Fee
Waived
(early bird discount)
Applicants who submitted the enrollment form before March 2014
Subscriber
Fees
Streaming
Level 1
Data
Waived
Requirements:
Display data of at least two of the following products:
HKEx CNH currency futures, CESC index futures and other new products
including commodities futures
Subscribers restricted to clients in the Regions
BMP
Service
Waived
Requirements:
Display data of at least two of the following products:
HKEx CNH currency futures, CESC index futures
Website shall include a version in local language of one of the Regions
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Regions No. of Application
Received Services Launched
Mainland China 11 5
Japan 0 0
Korea 13 5
Singapore 3 0
Taiwan 1 1
Others (vendors with subscribers in
the 5 regions)
13 10
Total 41 21
As of May 2014
Current Marketing Programme
Enrollment Status
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Programme Duration From Jun 2014 to Dec 2016
Regions Covered Mainland China, Japan, Korea, Singapore, Taiwan, Australia, New Zealand,
Malaysia, India
Redistribution Fee
Waived (early bird discount)
Applicants who submit the enrollment forms by Mar 2015
Subscriber
Fees
Streaming
Level 2
Data
Waived
Requirements:
Display data of the following products:
HKEx CNH currency futures and CESC index futures, OR commodities futures
Subscribers restricted to clients in the Regions
BMP
Service
Waived
Requirements:
Display data of the following products:
HKEx CNH currency futures and CESC index futures,
OR commodities futures
Website shall include a version in local language of one of the Regions
Highlights:
Focus on new ACD and derivatives products
Extend programme duration to end of 2016
Cover new regions
Extend early bird offer
Offer free real-time Level 2 data (10 depths)
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Marketing Programme for
Asia Commodities and Derivatives Products
Content
OMD-D Business Related Issues 1
Marketing Programme for Asia Commodities and New Derivatives Products 2
New Policies to Meet Market Needs 3
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New Policies to Meet Market Needs
Include bid/ask volume for
Level 1 securities market
data
• Applies to both real-time and 15-mins delayed data services
Allow streaming delayed
data services
• Current policy only allows delayed data provided on snapshot
basis.
• Allow streaming delayed data services to improve service level
Extend BMP third party
service on mobile
applications
• Current policy only allows BMP third party website services
• Extend BMP third party service on mobile applications
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Data content for Level 1 securities market data
Current policy New policy
Bid/ask price, high/low, last traded
price, nominal, cumulative
turnover/volume, opening/closing,
IEV & IEP from auction trading
session
Bid/ask price, bid/ask volume,
high/low, last traded price, nominal,
cumulative turnover/volume,
opening/closing, IEV & IEP from
auction trading session
Effective: June 2014
Thank you!
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