HKEx launches After-Hours Futures Trading

Hong Kong Exchanges and Clearing Ltd introduced AHFT April 6.

The decision will allow local investors to adjust their positions in response to market news breaking during post-Asian trading.

The Hang Seng Index and H-share Index futures will be open for trading between 5 pm and 11 pm local time. Regularly-scheduled trading hours in the region normally end at 4:15 pm.

HKEx extended its futures trading period by one hour in March 2011 and March 2012, respectively. It increased its daily trading time from 4 hours to 6 over the period prior to the roll out of AHFT.

The market's response to AHFT is expected to be positive since over 60% of local traders said they would participate in the scheme, HKEx said.

Singapore and Japan have adopted AHFT to help investors react in a timely manner to events in Europe and the US which could influence the direction of derivatives. HKEx's launch of AHFT is just the latest example in a global trend.

Some analysts, however, said HKEx’s debut of AHFT will invariably inflate the bourse's operating costs while also further shrinking its already slim profit margin.