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 |
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| Trading Hours | 9:15 am – 12:00 noon and 1:00 pm – 4:30 pm (Expiring contract month will close at 4:00 pm on the Expiry Day) |
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| Expiry Day | The business day immediately preceding the last business day of the contract month |
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| 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. |
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| Transaction Costs |
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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.
| Contract | Launch date |
| Mini-HSI Futures | 9 Oct 2000 |
| Mini-HSI Options | 8 Nov 2002 |
| Mini H-shares Index Futures | 31 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 Options | Short-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 Options | Short-dated Options: Nov and Dec 2016; Jan, Feb (new), Mar, Jun, Sep 2017; and Long-dated Options: Dec 2017, Jun and Dec 2018Â |
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.