Hong Kong Exchanges and Clearing Restricted (HKEX) will introduce a collection of place restrict enhancements to Hong Kong’s derivatives market.
The adjustments observe HKEX’s session conclusions printed in July 2022; and the Securities and Futures Fee’s (SFC) changes to the statutory place restrict necessities, as introduced in its related session conclusions. The enhancements will take impact on 22 December 2023, topic to regulatory approval.
To look at the SFC’s up to date statutory place restrict necessities, HKEX will:
- enhance the mixed place restrict for USD/CNH futures and choices, Mini USD/CNH futures and CNH/USD futures from 8,000 to 30,000 lengthy or quick place delta for all contract months; and
- enhance the spot month mixed place restrict for USD/CNH futures and choices, from 2,000 to fifteen,000 lengthy or quick place delta.
Wilfred Yiu, HKEX Co-Chief Working Officer and Head of Equities, stated: “At HKEX, we’re dedicated to introducing market microstructure enhancements to proceed to spice up the vibrancy and attractiveness of our markets. We’re due to this fact delighted to implement these adjustments to our derivatives market place limits, offering buyers with extra capability and higher flexibility, permitting them to higher handle their market publicity whereas making certain correct threat controls.”
HKEX can even enhance Single Inventory Possibility place limits to 250,000 contracts. Two extra tiers (200,000 and 250,000 contracts) will likely be added to the present three-tier Single Inventory Choices place restrict mannequin (presently, 50,000, 100,000, 150,000 contracts).
The prevailing 5,000 contracts per expiry month Single Inventory Futures place restrict mannequin will likely be revised to a five-tier mannequin, with web place limits of 5,000, 10,000, 15,000, 20,000, and 25,000 contracts; and the extra place limits that apply to Hold Seng Index and Hold Seng China Enterprise Index mini derivatives contracts will likely be eliminated.
Mr Yiu added: “We stay up for proceed working with market regulators and the monetary group extra broadly to additional help the event of Hong Kong’s derivatives market, offering our clients with higher alternative and enhanced flexibility.”