Hong Kong Local Brokers Oppose After-Hours Futures Plan
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Hong Kong Exchanges & Clearing Ltd.’s plan to begin after-hours futures trading in the city is fueling concern it will force small brokerages to close and lead to further concentration of market share.
The world’s largest exchange company by market value plans to introduce in March a trading session from 5 p.m. to 11 p.m. for contracts on the Hang Seng Index, the Hang Seng China Enterprises Index and gold. The plan will place too much of a cost burden on the small brokers to stay open and manage risk during that time, said Francis Lun, Hong-Kong based managing director at Lyncean Securities Ltd.