HKEx Derivatives Information for US Investors 
01/09/2017 
 

HKEx has obtained permission from the US Commodity Futures Trading Commisssion (CFTC) and US Securities and Exchange Commission (SEC) to give US investors access to certain index futures and options traded on HKEx’s markets.

Equity Index Futures for US Investors

The CFTC has granted no-action relief to certain HKEx listed equity index futures (Eligible Index Futures), providing access to eligible US investors. The CFTC has also granted an exemption to Hong Kong allowing HKFE participants to deal directly with US investors.

Eligible US Investors

Under no-action relief by CFTC, all US investors can trade Eligible Index Futures.
Eligible Index Futures
Hang Seng Index Futures
Hang Seng China Enterprises Index Futures
Mini-Hang Seng Index Futures
Mini-Hang Seng China Enterprises Index Futures
CES China 120 Index Futures
HSI Volatility Index (VHSI) Futures
HKFE Participants Trading Arrangement with Eligible US Investors

The CFTC has granted Regulation Part 30.10 Exemption for Hong Kong. HKFE participants can deal directly with US investors after the application with the US National Futures Association via the Securities and Futures Commission (SFC). (For details of the application procedure, please refer to SFC website)

Related Documents
HKEx Derivatives for US Investors Information Sheet
Circular - CFTC Regulation Part 30.10 Exemption for Hong Kong
Circular - HKEx obtains US CFTC Approval for CES 120 and VHSI Futures Contracts
Circular - No-Action Relief from U.S. Commodity Futures Trading Commission (CFTC) in Connection with the Offer and Sale in the U.S. of Mini Futures Contracts on Hang Seng Index (HSI) and Hang Seng China Enterprises Index (HSCEI)
Equity Options for US Investors
HKEx has filed a Class No-action Relief to the SEC in order to allow certain US investors (Eligible US Investors) to access certain options (Eligible Options) listed on HKEx’s markets. Under Class No-action Relief, HKEx participants may engage with Eligible Investors for options related services.

Eligible US Investors

Under Class No-action Relief by the US SEC, only eligible broker-dealers and eligible institutions (EBD/EI) can access options in foreign markets. EBD/EI is any entity that meets the following standards:

- it must be a “qualified institutional buyer” as defined in Rule 144A(a)(1) under the US Securities Act of 1933; or an international organisation excluded from the definition of “US person” in Rule 902(k)(2)(vi) of Regulation S under the Securities Act; and
- it must have had prior actual experience with traded options in the U.S. options markets (and, therefore, would have received the disclosure document for US standardized options called for by Rule 9b-1 under the US Securities Exchange Act of 1934 (“Exchange Act”).
Eligible Options
  Hang Seng Index Options
Hang Seng China Enterprises Index Options
Mini- Hang Seng Index Options
Stock Options
HKEx Participants Trading Arrangement with Eligible Investors

Under class no-action relief by US SEC, HKEx participants can offer options to eligible US investors upon complying with the conditions stated in the Class Relief Letter issed by SEC and circulars issued by HKEx. The conditions and procedures are as follows:

- Participants who intend to transact eligible options with one or more eligible US investors are required to notify SEHK/HKFE for record keeping purposes by completing and returning a signed form. (Please refer to the related documents section.)
- Participants are required to obtain, and maintain a record of, representations from eligible US investors before effecting a transaction in eligible options with eligible US investors. (Please refer to the related documents section.)
Related Documents
HKEx Derivatives for US Investors Information Sheet
Stock Exchange of Hong Kong (SEHK)
Circular - US Securities and Exchange Commission Class No-action Relief filed by HKEx (SEHK)
Form -  SEHK participants to notify SEHK of their intention to engage US investors (Appendix 1 of the circular)
Form - Form of representations for eligible US investors to sign and submit to SEHK participants before effecing transaction of options (Appendix 2 of the circular)
Hong Kong Futures Exchange Limited (HKFE)
Circular - US Securities and Exchange Commission Class No-action Relief filed by HKEx (HKFE)
Form - HKFE participants to notify to HKFE of their intention to engage US investors (Appendix 1 of the circular)
Form -  Representations form for eligible US investors to sign and submit to HKFE participants before effecing transaction of options (Appendix 2 of the circular)