HKEX Adds Two New Options on Futures Contracts to its Offering

Hong Kong Exchanges and Clearing Limited (HKEX) yesterday announced the launch of physically settled Options on Futures Contracts (OOF) on Hang Seng Index Futures and Hang Seng China Enterprises Index Futures.

According to the official press release, these new OOF will be introduced on 23 August 2021 and will offer investors a suite of new trading and risk management tools. 

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These new contracts are expected to further enhance HKEX’s derivatives product suite and add to the breadth and depth of Hong Kong’s markets. 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. 

“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,” said Wilfred Yiu, HKEX’s Co-Head of Markets, “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.

Recently, HKEX posted its financial figures for the first half year of 2021​ ended 30 June, showing a signicant jump in revenue and profits. The operator recorded revenue and other income of HK$10,909 million, 24 percent higher than the first six months of 2020. EBITDA margin totaled 79 percent, up 2 percent on a YoY basis. Moreover, profit attributable to shareholders rose to HK$6,610 million, 26 percent higher than the previous year.