HKEX Shortens Structured Product Listing Cycle to Three Days

Source: Regulation Asia Editors, Regulation Asia 2020-06-30

From 13 July, issuers can list derivative warrants, CBBCs and inline warrants for trading on the third trading day after the submission of their term sheets.

HKEX (Hong Kong Exchanges and Clearing) has announced that it will shorten the listing cycle of structured products to three trading days from five trading days.

Issuers will be able to list their structured products – such as derivative warrants, callable bull/bear contracts (CBBC) and inline warrants – on the cash market for trading on the third trading day after their submission of term sheets.

“The new listing cycle will enhance market efficiency on product issuance, and help increase product choices for investors,” HKEX said.

HKEX Head of Markets Wilfred Yiu said the shorter listing cycle will also help issuers better respond to changing market conditions, and boost the efficiency and responsiveness of the Hong Kong market.

“This is an important step as we further enhance and grow our structured product market, which has been the world’s number one in turnover for over a decade,” he said.

Products launched on or after 13 July 2020 will use the new listing cycle, which is applicable to all listed structured products on all eligible underlying assets.

The publication timeline of supplemental listing documents will remain unchanged, allowing investors access to said documents on the day following launch.

HKEX

Structured Product Listing Cycle

HKEX Shortens Structured Product Listing Cycle to Three Days

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