HKEX Launches First Tranche of MSCI Futures Contracts

Source: Regulation Asia Editors, Regulation Asia 2020-07-06

HKEX has launched ten new index futures contracts, part of its new licensing agreement with MSCI announced in May.

HKEX (Hong Kong Exchanges and Clearing) has launched the first futures contracts as part of its new index licensing agreement with MSCI announced in May.

“This represents a major step forward in the expansion of HKEX’s derivatives product suite and significantly adds to the breadth and depth of the Hong Kong markets,” the bourse operator said in a statement.

The ten newly-launched MSCI index futures contracts are denominated in US dollars and track underlying equities in Australia, mainland China, India, Indonesia, Japan, Malaysia, Taiwan, Thailand and Emerging Asia.

HKEX has introduced incentive programmes for liquidity providers, proprietary traders and block trade participants as part of the launch, and the Commission Levy charged by the SFC (Securities and Futures Commission) will be exempted for the first six months of trading.

Ten market makers are providing liquidity in the order book from day one (Monday 6 July), HKEX says.

The second tranche of MSCI contracts, encompassing seven more USD-denominated futures contracts, will launch on 20 July. (see the full list of new MSCI products here)

“Today’s listing marks an exciting new chapter for HKEX and our markets, as we provide even more choice to our customers, and continue to build the breadth, depth and attractiveness of Hong Kong’s financial markets as a global trading and investment hub,” said HKEX Head of Markets Wilfred Yiu.

“This will bring enhanced liquidity to our markets and greatly complement our existing product suite.”

HKEX

index futures contracts

HKEX Launches First Tranche of MSCI Futures Contracts

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