Hong Kong Bourse to spend $380 million on upgrading technology
Thu, 29 Mar 2012 16:13:08 GMT
Technology is extremely important for exchanges. With issues such as connectivity, co-location and the need for speed, exchanges must stay up to date with new technological advances in order to remain competitive.
This is reflected by Hong Kong Exchanges & Clearing Ltd who have plans to spend $386 million on technology upgrades. In their three year plan, they aim to boost trading speeds and expand their derivatives business.
“The exchanges are responding to the increased competition in the global capital marketplace,” Joseph Sarcona, head of electronic trading for Asia-Pacific at Morgan Stanley in Hong Kong, said in a telephone interview to Bloomberg. “The Hong Kong exchange may not have local competitive pressures, but by modernizing their infrastructure they want to do their part in maintaining Hong Kong’s status as Asia’s international financial hub.”
“If you are complacent, if you think no one else is going to take your market share, if you think no one else will break into your market, you will be at the mercy of history,” Charles Li, Hong Kong Exchanges chief executive officer, told reporters yesterday in Hong Kong.
Hong Kong has focused on connectivity to other markets and ease of trading for smaller brokers.
What would your exchange focus on? Or what would you recommend that exchanges implement in their technology? Let me know – comment below!
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