HKEX to Introduce Options on Futures Contracts

Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Thursday) the launch of physically settled Options on Futures Contracts (OOF) on Hang Seng Index Futures and Hang Seng China Enterprises Index Futures. These new contracts will further enhance HKEX’s derivatives product suite and add to the breadth and depth of Hong Kong’s markets.

These new OOF will be introduced on 23 August 2021 and will offer investors a suite of new trading and risk management tools. Investors holding OOF will have the opportunity to take a futures position on HKEX’s markets prior to the settlement of the underlying futures contract. 

HKEX’s Co-Head of Markets Wilfred Yiu said: “These are exciting new products which offer enhanced investment, trading and risk management opportunities for our global customers and investors. Their introduction to the Hong Kong derivatives market will further broaden our product offering and complement the existing Hang Seng Indexes product suite.”

Mr Yiu added: “Going forward, we will continue to develop new products to meet the needs of our customers and investors, as well as develop Hong Kong as the leading derivatives trading hub in Asia.

HKEX’s derivatives market has had a robust start to the year. The average daily volume of futures and options for the first six months of 2021 was over 1.2 million contracts, showing a 3 per cent increase year on year.

Detailed specifications of the new products are available in this circular.



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.