HKEX to offer mini H-shares index options


Hong Kong Exchanges and Clearing Limited (HKEX) plans to introduce Mini-Hang Seng China Enterprises Index Options (Mini H-shares Index Options) on Monday, September 5, 2016 to meet demand from retail investors and give market participants more flexibility by providing a contract one-fifth the size of its H-shares Index Options contract.

Underlying Index
Hang Seng China Enterprises Index
Contract Multiplier
$10 per index point
Minimum Fluctuation
One index point
Contract Months
Spot, next calendar month and next two calendar quarter months
Exercise Style
European Style
Option Premium
Quoted in whole index points 
Strike Prices
Index points

Intervals

Below 2000

50

At or above 2,000 but below 8,000

100

At or above 8,000

200

                                                 

Trading Hours9:15 am – 12:00 noon and 1:00 pm – 4:30 pm
(Expiring contract month will close at 4:00 pm on the Expiry Day)
Expiry DayThe business day immediately preceding the last business day of the contract month
Official Settlement
Price
The average of quotations taken at: 5-minute intervals from 5 minutes after the start of, and up to 5 minutes before the end of trading; and the close of trading on the Stock Exchange on the Last Trading Day.
Transaction Costs
Exchange Fee$1.00 per contract per side
Commission Levy$0.54*
Commission RateNegotiable
*The contract will be exempt from the Commission Levy from 5 September 2016 to 3 March 2017.

Mini H-shares Index Options will complement the H-shares Index and mini stock index futures and options currently offered by HKEX. HKEX has invited applications for market makers for the new product.

ContractLaunch date
Mini-HSI Futures9 Oct 2000
Mini-HSI Options8 Nov 2002
Mini H-shares Index Futures31 Mar 2008

Other Derivatives Market Enhancements

Starting from November 2016, HKEX will offer a fourth calendar month contract for its H-shares Index Options and Hang Seng Index Options (HSI Options) to support trading close to the expiry of the third calendar month contract.

HSI OptionsShort-dated Options: Nov and Dec 2016; Jan, Feb (new), Mar, Jun, Sep 2017; and
Long-dated Options: Dec 2017, Jun and Dec 2018, Jun and Dec 2019
H-shares Index OptionsShort-dated Options: Nov and Dec 2016; Jan, Feb (new), Mar, Jun, Sep 2017; and
Long-dated Options: Dec 2017, Jun and Dec 2018 

HKEX also plans to introduce a Primary Market Maker program in its H-shares Index Options and HSI Options markets on November 1, 2016 along with revised obligations for market makers that provide continuous quotes and market makers that respond to quote requests in its stock index options and stock options markets as well as enhanced market making support in those two markets.

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