HKEx to Add Closing Auction; Sell Stakes in OTC Clearer
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Hong Kong Exchanges and Clearing Ltd. plans to reintroduce a closing auction for its cash equities market, Chief Executive Charles Li told reporters today. The world’s No. 1 bourse operator by value will sell off stakes in an over-the-counter derivative clearing subsidiary.
The Hong Kong bourse operator suspended the auction in March 2009 after large moves at the end of the day spurred concerns about price manipulation. Exchanges in most countries use auctions to set closing prices by pooling share orders and finding the level at which the most can be matched.