SFC announces extension of Leveraged and Inverse Products’ eligible indices

Hong Kong SFC

The Securities and Futures Commission (SFC) just announced that is extending the eligible indices of Leveraged and Inverse Products (L&I Products) listed in Hong Kong to include Hong Kong equity indices and other non-equity indices.

Previously, L&I Product providers were limited to issuing products on non-Hong Kong, non-Mainland foreign equity indices. There are currently 12 L&I Products listed on HKEX’s securities market.

This is an important milestone in the development of Hong Kong’s Exchange Traded Product (ETP) market and a further step towards Hong Kong becoming the Asian hub for ETP investing,” said Brian Roberts, Head of ETPs, Market Development of HKEX. “We believe product innovation is important to achieving that goal because it helps market participants pursue their investment objectives by catering to their different needs and risk appetites.

According to the SFC’s announcement, L&I Product providers can begin submitting applications to the SFC for L&I Products on the new eligible indices on 9 January 2017.

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