Hong Kong Exchange installs MarketPrizm DMA
HKEx is using MarketPrizm to attract high-speed trading firms interested in DMA and co-location
Hong Kong Exchanges and Clearing has connected its equity and derivatives markets to MarketPrizm, a market data and infrastructure service targeted at low-latency trading firms.
HKEx has recently launched its Orion Central Gateway and Orion Market Data, which give participants faster access to their trading platform and market data services. The new co-location service connects the exchange with MarketPrizm’s Asia-Pacific network of mutualised DMA services – in theory making it quicker for financial institutions based elsewhere to access the Hong Kong market.
Direct market access involves the buy-side firm using a broker’s ID to connect directly to the exchange, in principle giving asset managers more control over how they execute an order. The co-location also helps clients to enjoy faster access to HKEx market data systems, giving them a potential advantage over competing firms.
Hong Kong is one of the major Asia Pacific markets, alongside Singapore, Tokyo, Sydney and Korea. Unlike other regional markets, Hong Kong does not have any domestic competition from ATS platforms such as Chi-X Global, which is active in both Japan and Australia. However, the exchange does compete with Singapore for international business, as well as mainland China exchanges.
“Hong Kong is a vital part of any global trading infrastructure,” said Tanuja Randery, chief executive at MarketPrizm. “We are seeing a high level of demand from our clients in EMEA, as well as in Asia, looking to access Hong Kong, Singapore and Mainland ETFs and derivative products, as well as future commodities products arising from HKEx’s acquisition of the London Metal Exchange.”
HKEx announced the acquisition of the LME in June, for $2.2 billion. The acquisition is part of the exchange’s plan to diversify and grow its international business, in the face of competition from the mainland China Shenzhen and Shanghai exchanges.
