Hong KongHong Kong Exchanges and Clearing (HKEX) has chosen Nasdaq to upgrade the technological infrastructure of Hong Kong’s main derivatives market, including trading, clearing and real-time risk management technologies.

The agreement also extends the existing relationship for an additional five years. HKEX and Nasdaq have been technology partners since 1994.

Under the new agreement, Nasdaq will deliver a new multi-asset trading technology engine (Nasdaq Multi Matching Engine), a multi-asset derivatives clearing engine and a real-time risk management solution (Nasdaq Clearing Engine and Nasdaq Real-Time Risk). The upgrade is expected to be completed in the second half of 2018.

The architecture that HKEX’s derivatives market will run on, the Nasdaq Financial Framework, comprises a number of business applications across the trade lifecycle. For post-trade operations, Nasdaq Clearing is integrated with the Nasdaq Matching Engine, which will allow HKEX to “benefit from a more harmonised approach”.

According to Nasdaq, its exchange technology, including trading, clearing, central securities depository (CSD) and market surveillance systems, is in operation in over 100 marketplaces across the Americas, Europe, Asia, Australia, Africa, the Middle East and the Caribbean.