HKEX Launches Hang Seng TECH Index Futures Options and Further Enhances Existing Hang Seng TECH Index Derivatives Products
Hong Kong Exchanges and Clearing Limited (HKEX) launched the Hang Seng TECH Index Futures Options today, enhancing its derivatives suite. These options allow investors to manage risks better with an underlying futures contract. Since their launch in August 2021, options have grown rapidly, achieving an average daily volume of 48,220 contracts as of November 23, 2022, and open interest exceeding 1,119,000 contracts valued at US$52 billion. A trading fee discount and a six-month commission levy exemption will promote these products further.
- Rapid growth of Hang Seng TECH Index Futures Options with 48,220 average daily volume by November 23, 2022.
- Open interest surpassing 1,119,000 contracts, demonstrating strong market interest.
- US$52 billion notional value associated with Hang Seng TECH Index derivatives, indicating significant investment activity.
- Trading fee discounts and commission levy exemption to encourage trading.
- Inclusion of Hang Seng TECH Index Options in After-Hours Trading, reflecting market demand.
- None.
- Hang Seng TECH Index Futures Options begins trading today
- Hang Seng TECH Index Options introduced in After-Hour Trading Session, effective today
- Additional contract months for Hang Seng TECH Index Futures and Hang Seng TECH Index Options introduced, effective today
HONG KONG, Nov. 28, 2022 /PRNewswire/ -- Hong Kong Exchanges and Clearing Limited (HKEX) is today (Monday) pleased to announce the launch of its Hang Seng TECH Index Futures Options and several enhancements to its existing Hang Seng TECH Index derivatives products.
HKEX's Hang Seng TECH Index Futures Options (Options on Futures, OOF) will begin trading today and complement the existing derivatives suite on Hang Seng indices. Investors holding an OOF will now have the opportunity to manage their risk with reference to a futures position on HKEX, prior to the settlement of the underlying futures contract.
HKEX's OOFs were launched in August 2021 and have been one of the fastest growing products ever on HKEX's derivatives market. Average daily volume (ADV) of HKEX's OOFs, Hang Seng Index Futures Options and Hang Seng China Enterprises Index Futures Options, recorded a monthly ADV of 48,220 contracts as at 23 November 2022, marking a significant increase from ADV of 4,072 contracts in 2021. The combined open interest of HKEX's OOFs also exceeded 1,119,000 contracts in November, with a notional value of US
A trading fee discount will be applied to the new Hang Seng TECH Index Futures Options until further notice. The SFC's commission levy of this contract will also be exempted for six months.
HKEX Chief Operating Officer & Co-Head of Markets Wilfred Yiu said: "The strong momentum of OOFs and Hang Seng TECH Index products is great to see, and reflects our ongoing efforts to enhance Hong Kong's position as a vibrant and connected international derivatives market. The launch of the Hang Seng TECH Index Futures Options and enhancements to the broader suite of Hang Seng TECH Index derivatives today will provide global investors even more choice and flexibility, helping them to successfully manage their portfolios and risks. HKEX is committed to continuing to build the breadth and attractiveness of Hong Kong's derivatives market, supporting the city's development as a world-class trading, investment and risk-management hub."
HKEX is also pleased today to announce the inclusion of Hang Seng TECH Index Options in the After-Hours Trading (AHT) Session, commencing today, 28 November. In part, due to global market volatility, there has been significant increase in activity in the AHT session, with ADV in the AHT session at 107,191 contracts as at 22 November 2022, up
In addition, HKEX has added new contract months for its Hang Seng TECH Index Futures and Hang Seng TECH Index Options (see appendix for details), which are also available for trading from today, giving investors a more complete term structure for their trading and risk management needs. Trading of the Hang Seng TECH Index Futures has gained strong momentum since its launch in 2021, with ADV growing
Detailed specifications of the Hang Seng TECH Index Futures Options as well as other enhancements made to the trading of Hang Seng TECH Index derivatives products are available in this circular.
APPENDIX
Contract Months available for Hang Seng TECH Index derivatives starting 28 November 2022
Products | Contract Months |
Hang Seng TECH Index Futures, Hang TECH Index Options & Hang Seng TECH Index Futures Options | Short-dated contracts: Spot month, next three calendar months and next three calendar quarter months
Long-dated contracts: the three months of June and December following the contract months specified for short-dated contracts |
About HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is a publicly-traded company (HKEX Stock Code:388) and one of the world's leading global exchange groups, offering a range of equity, derivative, commodity, fixed income and other financial markets, products and services, including the London Metals Exchange.
As a superconnector and gateway between East and West, HKEX facilitates the two-way flow of capital, ideas and dialogue between China and the rest of world, through its pioneering Connect schemes, increasingly diversified product ecosystem and its deep, liquid and international markets.
HKEX is a purpose-led organisation which, across its business and through the work of HKEX Foundation, seeks to connect, promote and progress its markets and the communities it supports for the prosperity of all.
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SOURCE Hong Kong Exchanges and Clearing Limited (HKEX)
FAQ
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