Financial and Monetary Affairs 73
launched during the year, increasing the total number of ETFs traded on the SEHK to 17. The total number of Callable Bull/Bear Contracts (CBBCs) leaped from 24 to 131 during the year. Turnover of CBBCs surged from $11.3 billion in 2006 to $71.4 billion in 2007. A total of 4 483 derivative warrants were listed on the securities market at the end of 2007, an increase of 129 per cent from 2006. Turnover of derivative warrants rose by 162 per cent to $4,694 billion, which represented nearly 22 per cent of the total market turnover. Stock options. turnover also saw remarkable increase from 18 127 353 contracts in 2006 to 45 982 968 contracts in 2007.
In the futures market, a number of new records were set as a result of strong growth in trading volume and open interest. Nearly 88 million futures and options. contracts were traded, representing a year-on-year increase of 105 per cent. The Hang Seng Index Futures and the H-shares Index Futures recorded a turnover of 17 160 964 contracts and 10 846 277 contracts respectively, rising 35 per cent and 122 per cent from 2006. The Hang Seng China H-Financials Index Futures were launched in April 2007 and recorded a total turnover of 3 220 contracts. It is envisaged that more new products will be introduced in 2008 to further enrich the product base of the Hong Kong market.
The SEHK operates the Third Generation Automatic Order Matching and Execution System (AMS/3) for securities trading. AMS/3 provides an electronic platform for trading equities, debt securities, exchange-traded funds, unit trusts/mutual funds, derivative warrants and equity linked instruments. It also provides facilities and investor access channels that make securities trading more accessible.
The Hong Kong Securities Clearing Company Limited (HKSCC), a wholly owned subsidiary of HKEX, operates the third generation of the Central Clearing and Settlement System (CCASS/3) for clearing and settlement of securities transactions concluded at the SEHK. The CCASS/3 is an automated book-entry system that operates on an open architecture. In addition to brokers and custodians, certain CCASS services are also available to retail investors. For example, investors may open Investor Participant Accounts with the clearing company to keep their securities in CCASS.
The HKFE operates the Hong Kong Futures Automated Trading System for the trading of futures and options contracts and the Derivatives Clearing and Settlement System (DCASS) for the clearing and settlement of such contracts. DCASS shares the same common database and system infrastructure as the trading system.
SD Net, the consolidation of the above three networks, was completed in mid- July 2007, after the successful migration of the AMS/3 circuits to the network. SD Net enables brokers and participants to use a more reliable network at lower network costs. The hardware of the trading, clearing and settlement system supporting the securities and futures markets had been upgraded with raised capacity and functionality.