Hong Kong Exchanges & Clearing Ltd. will implement a volatility control mechanism in its derivatives market in January 2017 following a delay in November.

The system will be rolled out Jan. 16, 2017. The volatility control mechanism is designed to prevent extreme price volatility arising from trading incidents.

The bourse operator said it has completed all necessary analysis and follow-up to resolve the technical issue. The volatility control mechanism in the stock exchange's securities market was introduced Aug. 22.