HKEX to Introduce Futures and Options on Hang Seng TECH Index
- Hang Seng TECH Index Futures to launch on 23 November 2020
- Hang Seng TECH Index Options to launch on 18 January 2021
- Trading fee discount and SFC Commission Levy Exemption will be applied to newly launched contracts
HONG KONG, Nov. 5, 2020 /PRNewswire/ -- Hong Kong Exchanges and Clearing Limited (HKEX) is today (Thursday) pleased to announce it will introduce futures and options contracts based on the Hang Seng TECH Index on 23 November 2020 and 18 January 2021 respectively, subject to regulatory approval and market readiness.
The Hang Seng TECH Index Futures and Options will be the first exchange-traded derivatives contracts to track the index, complementing HKEX's flagship Hang Seng Index and Hang Seng China Enterprise Index products.
Wilfred Yiu, Head of Markets, HKEX, said: "Tech and innovation is a major pillar of our securities market ecosystem, and the Hang Seng TECH Index has already become an essential measure of tech sector performance. We are delighted to be providing investors with even more options with the launch of these futures and options contracts tracking the Hang Seng TECH Index."
"These new Hang Seng TECH Index products will further enrich the Hong Kong technology investment landscape and help to attract more high quality technology companies from all over the world to our markets," said Mr Yiu.
Anita Mo, Chief Executive Officer, Hang Seng Indexes Company, said: "The Hang Seng TECH Index aims to reflect the performance of main players in technology sector listed in Hong Kong, and to facilitate the development of various index-linked products, including derivatives and ETFs. We are pleased to see the launch of the linked futures and options tracking Hang Seng TECH Index and it significantly advances our aim of establishing the Hang Seng TECH Index as our third flagship index."
The Hang Seng TECH Index was launched in July 2020, and tracks the 30 largest technology companies listed in Hong Kong. According to back-testing data, the Hang Seng TECH Index has provided a 36 per cent return for 2019 and a 60 per cent return for 2020, as at the end of October[1].
The introduction of the proposed contracts will bring new exposure management tools to the market, giving greater product coverage of the technology sector in Hong Kong.
The proposed futures and options will further enhance HKEX's product offering on the Hang Seng TECH Index, and are in addition to the four Hang Seng TECH Index ETFs already trading on HKEX's markets.
Key Features of Hang Seng TECH Index Futures and Options (subject to regulatory approval)
Underlying Index | Hang Seng TECH Index |
Trading Currency | Hong Kong Dollar |
Contract Multiplier | $50 per index point |
Minimum Fluctuation | 1 index point |
Contract Months | Spot, next calendar month and the following two quarterly months |
Pre-Opening | Hang Seng TECH Index Futures: 8:45 am – 9:15 am; 12:30 pm – 1:00 pm (No pre-opening for Hang Seng TECH Index Options) |
Trading Hours | 9:15 am – 12:00 noon (Morning Trading Session); 1:00 pm - 4:30 pm (Afternoon Trading Session); (No After-hours Trading Session for Hang Seng Tech Index Options at launch) |
Last Trading Day | The business day immediately preceding the last business day of the Contract Month |
Final Settlement Price / Official Settlement Price | The average of the underlying index values taken at (i) five (5) minute intervals from five (5) minutes after the start of, and up to five (5) minutes before the end of, the Continuous Trading Session of SEHK; and (ii) the close of trading on SEHK on the Last Trading Day, rounded down to the nearest whole number. |
The Commission Levy will be exempted and a market-wide trading fee discount will be introduced for the first six months of trading of the new contracts. Margin rates will be announced in due course. Additional information of the Hang Seng TECH Index Futures and Options is available in a circular issued today.
Note:
[1] Source: Hang Seng Indexes Company
About HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is one of the world's major exchange groups, and operates a range of equity, commodity, fixed income and currency markets. HKEX is the world's leading IPO market and as Hong Kong's only securities and derivatives exchange and sole operator of its clearing houses, it is uniquely placed to offer regional and international investors access to Asia's most vibrant markets.
HKEX is also the global leader in metals trading, through its wholly owned subsidiaries, The London Metal Exchange (LME) and LME Clear Limited. This commodity franchise was further enhanced with the launch of Qianhai Mercantile Exchange (QME), in China, in 2018.
HKEX launched the pioneering Shanghai-Hong Kong Stock Connect programme in 2014, further expanded with the launch of Shenzhen Connect in 2016, and the launch of Bond Connect in 2017.
SOURCE Hong Kong Exchanges and Clearing Limited (HKEX)
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