Hong Kong Exchange Launches Hang Seng TECH Index Futures Options, Investors Can Manage Risks by Using Options on Futures Prior to Futures Settlement D

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Hong Kong Exchange Launches Hang Seng TECH Index Futures Options, Investors Can Manage Risks by Using Options on Futures Prior to Futures Settlement Date

30th November 2022 | Hong Kong

Hong Kong Exchange (HKEX) has launched the Hang Seng TECH Index Futures Options, allowing investors to manage risks by using options on futures prior to futures settlement date.  HKEX: “HKEX’s Options on Futures, OOF 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 $52 billion.”  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.   Hang Seng TECH Index Options has also been added in the After-Hours Trading (AHT) Session.  HKEX: “due to global market volatility, there has been significant increase in activity in the AHT session.”

“ Hong Kong Exchange Launches Hang Seng TECH Index Futures Options, Investors Can Manage Risks by Using Options on Futures Prior to Futures Settlement Date “

 


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HKEX Chief Operating Officer & Co-Head of Markets Wilfred Yiu: “The strong momentum of OOFs (Options on Futures) 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.”

 

After-Hours Trading (AHT) Session – Hang Seng TECH Index Options Added Hong Kong Exchange

HKEX – 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 56% from 68,717 contracts compared with the full year of 2021.

 

New Contract Month for Hang Seng TECH Index Futures & Hang Seng TECH Index Options

HKEX – 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 389% to 71,967 contracts as at 22 November 2022, from 14,718 contracts in 2021. The contract set new records in single-day volume and open interest in October and November 2022 respectively.  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.

 

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. Visit: www.hkexgroup.com




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    Originally posted on: https://www.caproasia.com/2022/11/30/hong-kong-exchange-launches-hang-seng-tech-index-futures-options-investors-can-manage-risks-by-using-options-on-futures-prior-to-futures-settlement-date/?utm_source=rss&utm_medium=rss&utm_campaign=hong-kong-exchange-launches-hang-seng-tech-index-futures-options-investors-can-manage-risks-by-using-options-on-futures-prior-to-futures-settlement-date