Market Making/Liquidity Providing Obligations and Incentives 
20/09/2017 
 

Introduction

HKEX’s derivatives market has both Market Maker (MM) Program and / or Liquidity Provider (LP) Program for different derivatives products.  The MM obligations and MM incentives under the MM Program for futures contracts and index options contracts are set out in the HKFE Rules.  The MM obligations and MM incentives under the MM Program for stock options contracts are set out in the Options Trading Rules of the Stock Exchange.  LP Program is a commercial arrangement for the Exchange to appoint LPs to provide liquidity for new products, which require more flexibility in terms of LP obligations and LP incentives and are not stipulated in the exchange rules and procedures. 

The derivatives products with MM Program and / or LP Program are as follows:

Product Type

Contract

MM Program

LP Program

Futures Contracts

Stock Index Futures

HSI Volatility Index Futures
HSI Dividend Point Index Futures
HSCEI Dividend Point Index Futures
BRICS Futures
Sector Index Futures

CES China 120 Index Futures
HSI Volatility Index Futures
Sector Index Futures

Stock Futures

Single Stock Futures

N/A

Currency Futures

USD/CNH Futures

EUR/CNH Futures
JPY/CNH Futures
AUD/CNH Futures
CNH/USD Futures

Interest Rate Futures

1-month HIBOR Futures
3-month HIBOR Futures

N/A

Commodity Futures

N/A

LME Mini Copper Futures
LME Mini Aluminum Futures
LME Mini Zinc Futures
LME Mini Nickel Futures
LME Mini Tin Futures
LME Mini Lead Futures

Option Contracts

Stock Index Options

Hang Seng Index Options
Mini Hang Seng Index Options
HSCEI Options
Mini-HSCEI Options

N/A

 

Stock Options

Single Stock Options

N/A

Currency Options

N/A

USD/CNH Options

 Eligibility

Product Type

MM

LP

HKFE Futures Contracts and

Option Contracts

  •    HKFE Exchange Participant (EP), or
  •    Corporate entity as client of EP must  has an association to the EP and also must meet at least one of the requirements:
    i) be a regulated entity by the Securities and Futures Commission (SFC) to deal in securities or futures contracts, except as an introducing agent ; or licensed for similar activity by an overseas authority having a Memoradum of Understanding with SFC;
    Ii)   be a licensed bank;
    Iii)  have a credit rating of A- or above (S&P) or A3 or above (Moody’s); or
    iv)  have a minimum paid-up capital of HK$50 mil. and minimum shareholder funds of HK$100 mil.

   HKFE Exchange Participant or the client of the Exchange Participant

SEHK Stock Options

Option Trading Exchange Participant

N/A

For more details of the application procedures, please refer to the HKEX website at   http://www.hkex.com.hk/eng/market/hkex_part/criteria/otherapp/Table_Form_5.htm

LP and market making obligations and incentives

The following tables summarise the market making obligations and incentives in futures and options contracts:

Stock Index Futures (Except Sector Index Futures, Dividend Point Index Futures and Volatility Index Futures, please refer the tables below for the requirements)

Market Making Obligation                    

Provision of
Continuous Quotes (CQ)

Response to
Quote Requests (QR)

Assigned Contract


Not less than 2 contract months
[i.e. Spot month and the next calendar month] 

All contract months

Trading Requirement

Provision of CQ for not less than
70% of the trading hours in each calendar month
 

Response to not less than 70%
of the QR in each calendar month

Maximum Time Limit for Responding to QR
 

N/A

Response to a QR within 20 seconds of the QR

Minimum Display Time

Not fewer than 10 seconds, unless a change in the level of the underlying index occurs during the 10 seconds display period, in which case, market makers may change their quotes
 

Maximum Bid/Offer Spread

Not greater than 15 minimum fluctuations

Minimum Quote Size
 

  Not fewer than 5 contracts

Sector Index Futures 

Market Making Obligation                    

Provision of
Continuous Quotes (CQ)

Response to
Quote Requests (QR)

Assigned Contract

Not less than 2 contract months
[i.e. Spot month and the next calendar month] 

All contract months

Trading Requirement

Provision of CQ for not less than
70% of the trading hours in each calendar month
 

Response to not less than 70%
of the QR in each calendar month

Maximum Time Limit for Responding to QR
 

N/A

Response to a QR within 20 seconds of the QR

Minimum Display Time

Not fewer than 10 seconds, unless a change in the level of the underlying index occurs during the 10 seconds display period, in which case, market makers may change their quotes
 

Maximum Bid/Offer Spread 

 

Hang Seng Mainland Oil & Gas Index Futures

4 Index points or 0.2% of bid price, whichever is higher

Hang Seng Mainland Banks Index Futures

6 Index points or 0.2% of bid price, whichever is higher

Hang Seng Mainland Properties Index Futures

7 Index points or 0.2% of bid price, whichever is higher

Hang Seng Mainland Healthcare Index Futures

8 Index points or 0.2% of bid price, whichever is higher

Hang Seng IT Hardware Index Futures 

6 Index points or 0.2% of bid price, whichever is higher

Hang Seng Software & Services Index Futures

11 Index points or 0.2% of bid price, whichever is higher

CES Gaming Top 10 Index Futures 

13 Index points or 0.2% of bid price, whichever is higher

     

Minimum Quote Size
 

  Not fewer than 5 contracts

Liquidity Provider Obligations Provision of Continuous Quotes (CQ)
Assigned Contract Spot month and next month
Maximum Bid/ Offer Spread
  • CES Gaming Top 10 Index Futures
    13 index points or 0.15% of bid price, whichever is higher (Type A)
  • Hang Seng Mainland Banks Index Futures
    6 Index points or 0.20% of bid price, whichever is higher (Type A)
    4 Index points or 0.15% of bid price, whichever is higher (Type B)
  • Hang Seng Mainland Properties Index Futures
    7 Index points or 0.20% of bid price, whichever is higher (Type A)
    3 Index points or 0.15% of bid price, whichever is higher (Type B)
  • Hang Seng Mainland Oil & Gas Index Futures 
    4 Index points or 0.20% of bid price, whichever is higher (Type A)
    4 Index points or 0.15% of bid price, whichever is higher (Type B)
  • Hang Seng IT Hardware Index Futures
    6 Index points or 0.20% of bid price, whichever is higher (Type A)
  • Hang Seng Software & Service Index Futures
    11 Index points or 0.20% of bid price, whichever is higher (Type A)
  • Hang Seng Mainland Healthcare Index Futures
    8 Index points or 0.20% of bid price, whichever is higher (Type A)
Minimum Quote Size 5 Contracts
Minimum % of Trdaing Hours Coverage

70% of trading hours in a month (Type A)
80% of trading hours in a month (Type B)

CES120 Index Futures

Liquidity Provider Obligation Provision of Continuous Quotes (CQ)
Assign Contract Spot and next month
Minimum Percentage of Liquidity Providing Hours 70% of trading hours in a month (Type A)
80% of trdaing hours in a month (Type B)
Maximum Bid/Offer Spread (Index Points) 0.5% of bid price (Type A)
5 index points or 0.1% of bid price, whichever is higher (Type B)
Minimum Contract Size 5 contracts
Minimum Percentage of Liquidity Providing Hours 70% of trading hours in a month (Type A)
80% of trdaing hours in a month (Type B)

Dividend Index Point Futures  

Market Making Obligation

Provision of
Continuous Quotes (CQ)

Response to
Quote Requests (QR)

Assigned Contract

All five yearly contracts

 

Trading Requirement

Provision of CQ for not less than 70% of the trading hours in each calendar month

Response to not less than 70% of the QR in each calendar month

Maximum Time Limit for Responding to QR

N/A

Response to a QR within 20 seconds of the QR

Minimum Display Time

Not fewer than 10 seconds, unless a change in the level of the underlying index occurs during the 10 seconds display period, in which case, market makers may change their quotes

Maximum Bid/Offer Spread

30.00 points or 10% of bid price, whichever is higher

Minimum Quote Size

50 contracts

 HSI Volatility Index Futures

Market Making Obligation                    

Provision of
Continuous Quotes (CQ)

Response to
Quote Requests (QR)

Assigned Contract

All contract months
(Spot month and the next two calendar months)
 

Trading Requirement

Provision of CQ for not less than
70% of the trading hours in each calendar month
 

Response to not less than 70%
of the QR in each calendar month

Maximum Time Limit for Responding to QR
 

N/A

Response to a QR within 20 seconds of the QR

Minimum Display Time

Not fewer than 10 seconds, unless a change in the level of the underlying index occurs during the 10 seconds display period, in which case, market makers may change their quotes
 

Maximum Bid/Offer Spread
 

0.50 points or 5% of bid price,  whichever is higher 

Minimum Quote Size
 

Not fewer than 5 contracts

Liquidity Provider Obligation Provision of Continuous Quotes (CQ)
Assign Contract Spot month and next 2 calendar months
Maximum Bid/Offer Spread (Index Points) 0.5 points or 5% of bid price, whichever is higher
Minimum Quote Size 5 contracts
Minimum % of Trading Hours Coverage 70% of trading hours in a month

Stock Index Options

There are three types of market makers in HKEX’s stock index options market:
- Primary Market Maker (PMM);
- Market maker providing continuous quotes (CQMM); and
- Market maker responding to quote request (QRMM). 

For details of PMM Program, please refer to the hyperlink below:

http://www.hkex.com.hk/eng/market/dv_tradfinfo/pmm.htm

Below is a summary of the CQMM and QRMM program:

Market Making
Obligation                   

Provision of
Continuous Quotes (CQ)

Response to
Quote Requests (QR)

Assigned Series

Not less than 50 option series*

(except that, not less than 25 option series for Mini-Hang Seng Index Options and Mini-HSCEI Options**)

All QR issued (except for QR in long dated index options)

Trading Requirement

Provision of CQ not less than 70%
of the trading hours in each calendar month
 

Response to not less than 70%
of the QR in each calendar month

Maximum Time Limit for
Responding to QR
 

N/A

Response to a QR within 20
seconds of the QR

Minimum Display Time

Not less than 20 seconds, unless a change in the price level of the Spot Month Futures Contracts of the underlying index occurs during the 20 seconds display period, in which case, market makers may change their quotes
 

Maximum bid/offer spread
(Except for Long Dated Index Options)

For HSI Options and HSCEI Options: 

Month

Price

Max. bid/offer spread

1st, 2nd, 3rd, 4th calendar

 1-750 points

Max (30 points, 10% of bid)

> 750 points

75 points

1st , 2nd quarter

 1-750 points

Max (40 points, 20% of bid)

> 750 points

150 points

3rd quarter

 1-750 points

Max (50 points, 25% of bid)

> 750 points

200 points

 
For Mini-HSI Options and Mini-HSCEI Options: 

Month

Price

Max. bid/offer spread

1st, 2nd calendar

 1-750 points

Max (30 points, 10% of bid)

> 750 points

75 points

1st quarter

 1-750 points

Max (40 points, 20% of bid)

> 750 points

150 points

2nd quarter

 1-750 points

Max (40 points, 20% of bid)

> 750 points

150 points

Minimum Quote Size
 

For HSI Options and HSCEI Options 

Month

Min. Quote Size

1st, 2nd, 3rd, 4th calendar

5 contracts

1st , 2nd, 3rd quarter

3 contracts

For Mini-HSI Options and Mini-HSCEI Options 

Month

Min. Quote Size

1st , 2nd calendar

5 contracts

1st , 2nd quarter

3 contracts

* For HSI Options and HSCEI Options, CQMM should provide bid/offer quotes in at least 50 option series chosen from the following selection pool:  

Contract Month

Option Series

Series For Selection

Call

Put

Spot month

 Out-of-the-Money

10

10

 In-the-Money

2

2

2nd Calendar Month

 Out-of-the-Money

10

10

 In-the-Money

2

2

3rd Calendar Month

 Out-of-the-Money

10

10

 In-the-Money

2

2

4th Calendar Month

 Out-of-the-Money

7

7

 In-the-Money

2

2

1st Quarter Month

 Out-of-the-Money

7

7

 In-the-Money

2

2

2nd Quarter Month

 Out-of-the-Money

7

7

 In-the-Money

2

2

3rd Quarter Month

 Out-of-the-Money

7

7

 In-the-Money

2

2

Total

144

   ** For Mini-HSI Options and Mini-HSCEI Options, CQMM should provide bid / offer quotes in at least 25 option series chosen from the following selection pool:

Contract Month

Option Series

Series For Selection

Call

Put

Spot month

 Out-of-the-Money

10

10

 In-the-Money

2

2

2nd Calendar Month

 Out-of-the-Money

10

10

 In-the-Money

2

2

1st Quarter Month

 Out-of-the-Money

7

7

 In-the-Money

2

2

2nd Quarter Month

 Out-of-the-Money

7

7

 In-the-Money

2

2

Total

84


Market Maker (MM) Incentives for Stock Index Futures and Options

Product

Market Maker
Fee (HK$)

Market Maker in Other Stock Index
Products with same underlying Index
Fee (HK$)*

Standard
Exchange
Fee (HK$)

Hang Seng Index Futures (HSIF)

n.a.

3.50 (MM in HSIO, MHIF or MHIO)

10.00

Hang Seng Index Options (HSIO)

2.00

3.50 (MM in MHIF or MHIO)

10.00

Mini Hang Seng Index Futures (MHIF)

n.a.

1.00 (MM in HSIO or MHIO)

3.50

Mini Hang Seng Index Options (MHIO)

0.40

0.70 (MM in HSIO or MHIF)

2.00

HSCEI Futures (HHIF)

n.a.

1.00 (MM in HHIO or MCHO)

3.50

HSCEI Options (HHIO)

0.50

1.00 (MM in HHIFor MCHO)

3.50

Mini-HSCEI Futures (MCHF) n.a. 0.70 (MM in HHIF or HHIO or MCHO) 2.00
Mini-HSCEI Options (MCHO) 0.20 0.35 (MM in HHIF or HHIO) 1.00
HSI Dividend Futures 0.60 n.a. 3.00
HSCEI Dividend Futures 0.30 n.a. 1.50
HSI Volatility Index Futures 2.00 n.a. 10.00
Sector Index Futures 0.40 n.a. 2.00

* The number of contracts that are eligible for a reduced Exchange Fee may be limited as specified in the Trading Procedures relating to Stock Index Futures and Stock Index Options contained in the HKFE Rules

Liquidity Providers Incentives

Sector Index Futures

- Cross-product trading fee rebate (Type A)
- Cross-product trading fee rebate, market date fee rebate, hosting services fee rebate and OAPI sub- license fee wavier (Type B)

 HSI Volatility Index Futures

- Trading fee rebate and cross-product trading fee rebate

 CES120 Index Futures 

- 100% trading fee rebate and cross-product trading fee rebate (Type A)
- 100% trading fee rebate, cross-product trading fee rebate, market date fee rebate, hosting services fee rebate and OAPI sub- license fee wavier (Type B)

 Stock Futures

Market Making Obligation

Provision of
Continuous Quotes (CQ)

Response to
Quote Requests (QR)

Assigned Contract

At least the first 2 contract months
[i.e. Spot Month and the next calendar month]

All contract months

Trading Requirement

Provision of CQ for not less than 70% of the trading hours in each calendar month

Response to not less than 70% of the QR in each calendar month
 

Maximum Time Limit for Responding to QR
 

N/A

Response to a QR within 10 seconds

Minimum Display Time

Not less than 20 seconds, unless a change in the nominal price of the underlying stock occurs during that period, in which case, the MM may change its Quote provided
 

Maximum Bid/Offer Spread
 

4 times the best bid / offer spread of the underlying stock or HK$0.15, whichever is greater

Minimum Quote Size
 

A minimum of 10 contracts

 
Market Maker Incentives for Stock Futures

Product

Market Maker Fee
(HK$)

Standard Exchange Fee
(HK$)

Stock Futures

0.50

3.50

 Stock Options

There are three types of market makers in HKEX’s stock options market: 

- Primary Market Maker (PMM);

- Market maker providing continuous quotes (CQMM); and

- Market maker responding to quote request (QRMM). 

For details of PMM Program, please refer to the hyperlink below:

http://www.hkex.com.hk/eng/market/dv_tradfinfo/pmm.htm

 Below is a summary of the CQMM and QRMM program:

Market Making Obligation            

Provision of
Continuous Quotes (CQ)

Response to
Quote Requests (QR)

Assigned Series #

Not less than 50 option series in an option class
 

QR issued in options series in an option class

Trading Requirement

Provision of CQ for the assigned option series in an option class for 50% or more of the trading hours in a month
 

Response to 50% or more QR in an option class in a month

Maximum Time Limit for Responding to QR
 

N/A

Response within 20 seconds on receipt of  a QR

Minimum Display Time (QR)

N/A

At least 20 seconds, unless a change in the underlying stock price occurs during the 20 seconds display period
 

Maximum Bid/Offer Spread

Option Series

Liquidity Level 1*

Liquidity Level 2*

Spot month with 3 days or less to expiry 20% of the bid price of the quote or 3 times the best bid/offer spread of the underlying securities, whichever is the lower.

20% of the bid price of the quote or 4 times the best bid/offer spread of the underlying securities, whichever is the lower.
 

Spot month with 4 days or more to expiry and the next 3 calendar expiry months 10% of the bid price of the quote or 3 times the best bid/offer spread of the underlying securities, whichever is the lower.

10% of the bid price of the quote or 4 times the best bid/offer spread of the underlying securities, whichever is the lower.
 

The next 2 calendar quarter expiry months

20% of the bid price of the quote or 4 times the best bid/offer spread of the underlying securities, whichever is the lower.
 

20% of the bid price of the quote or 6 times the best bid/offer spread of the underlying securities, whichever is the lower.

The 3rd calendar quarter expiry month and any other longer-dated expiry month as the Exchange deems necessary

20% of the bid price of the quote or 8 times the best bid/offer spread of the underlying securities, whichever is the lower.
 

20% of the bid price of the quote or 12 times the best bid/offer spread of the underlying securities, whichever is the lower.

Minimum Quote Size

Liquidity Level  1 -  30 contracts

Liquidity Level  2 -  15 contracts
 

  *   Liquidity Level Classification

Liquidity levels of option classes are determined by the Exchange from time to time based on the trading liquidity in the underlying stocks  

Stock Option Class

HKATS Code

From 31 July 2017 
to 30 August 2017

From 31 August 2017 
to 28 September 2017

 

Liquidity Level

Minimum Quote Size

Liquidity Level

Minimum Quote Size

iShares FTSE A50 China Index ETF(Note 1)

A50

1

30 lots

1

30 lots

AAC Technologies Holdings Inc

AAC

2

15 lots

2

15 lots

Anhui Conch Cement Company Limited

ACC

1

30 lots

1

30 lots

AIA Group Limited

AIA

1

30 lots

1

30 lots

Aluminum Corporation of China Limited

ALC

1

30 lots

1

30 lots

ChinaAMC CSI 300 Index ETF

AMC

1

30 lots

1

30 lots

Bank of Communications Company Limited

BCM

1

30 lots

1

30 lots

The Bank of East Asia, Limited

BEA

1

30 lots

2

15 lots

BOC Hong Kong (Holdings) Limited

BOC

1

30 lots

1

30 lots

BYD Company Limited

BYD

2

15 lots

2

15 lots

China Communications Construction Company Limited

CCC

1

30 lots

1

30 lots

China Coal Energy Company Limited

CCE

1

30 lots

1

30 lots

China COSCO Holdings Company Limited

CCS

1

30 lots

1

30 lots

China Cinda Asset Management Company Limited

CDA

1

30 lots

1

30 lots

CGN Power Co., Ltd

CGN

1

30 lots

1

30 lots

China Mobile Limited

CHT

1

30 lots

1

30 lots

China Unicom (Hong Kong) Limited

CHU

1

30lots

1

30 lots

CITIC Limited

CIT

1

30 lots

1

30 lots

CK Hutchison Holdings Limited

CKH

2

15 lots

2

15 lots

CK Asset Holdings Limited

CKP

2

15 lots

2

15 lots

China Life Insurance Company Limited

CLI

1

30 lots

1

30 lots

CLP Holdings Limited

CLP

2

15 lots

2

15 lots

China Merchants Bank Company Limited

CMB

1

30 lots

1

30 lots

CNOOC Limited

CNC

1

30 lots

1

30 lots

China Overseas Land & Investment Limited 

COL

1

30 lots

1

30 lots

Cathay Pacific Airways Limited

CPA

1

30 lots

1

30 lots

China Petroleum & Chemical Corporation

CPC

1

30 lots

1

30 lots

China Pacific Insurance (Group) Company Limited

CPI

1

30 lots

1

30 lots

China Railway Construction Corporation Limited

CRC

1

30 lots

1

30 lots

China Railway Group Limited 

CRG

1

30 lots

1

30 lots

China Resources Land Ltd

CRL

1

30 lots

1

30 lots

W.I.S.E. - CSI 300 China Tracker (Note 1)

CS3

2

15 lots

2

15 lots

CSOP FTSE China A50 ETF

CSA

1

30 lots

1

30 lots

China Shenhua Energy Company Limited

CSE

1

30 lots

1

30 lots

China CITIC Bank Corporation Limited

CTB

1

30 lots

1

30 lots

China Telecom Corporation Limited

CTC

1

30 lots

1

30 lots

CITIC Securities Co. Ltd.

CTS

2

15 lots

2

15 lots

Dongfeng Motor Group Company Limited

DFM

2

15 lots

2

15 lots

Esprit Holdings Limited

ESP

1

30 lots

1

30 lots

FIH Mobile Limited

FIH

1

30 lots

1

30 lots

Geely Automobile Holdings Ltd.

GAH

2

15 lots

2

15 lots

Galaxy Entertainment Group Limited

GLX

1

30 lots

1

30 lots

Great Wall Motor Company Limited

GWM

1

30 lots 

1

30 lots

Haitong Securities Co, Ltd

HAI

2

15 lots

2

15 lots

Hang Seng H-Share Index ETF

HCF

1

30 lots

1

30 lots

Power Assets Holdings Limited

HEH

2

15 lots

2

15 lots

Hong Kong Exchanges and Clearing Limited

HEX

1

30 lots

1

30 lots

Hengan International Group Co. Limited

HGN

2

15 lots

2

15 lots

HSBC Holdings Plc.

HKB

1

30 lots

1

30 lots

The Hong Kong and China Gas Company Limited

HKG

1

30 lots

1

30 lots

Henderson Land Development Company Limited

HLD

2

15 lots

2

15 lots

Huaneng Power International, Inc.

HNP

1

30 lots

1

30 lots

Hang Seng Bank Limited 

HSB

1

30 lots

2

15 lots

Jiangxi Copper Company Limited

JXC

1

30 lots

2

15 lots

Kunlun Energy Company Limited

KLE

1

30 lots

2

15 lots

Kingsoft Corporation Limited

KSO

1

30 lots

1

30 lots

Lenovo Group Limited

LEN

1

30 lots

1

30 lots

Li & Fung Limited

LIF

1

30 lots

1

30 lots

Link Real Estate Investment Trust

LNK

2

15 lots

2

15 lots

China Mengniu Dairy Co Ltd

MEN

2

15 lots

2

15 lots

MGM China Holdings Limited

MGM

2

15 lots

2

15 lots

China Minsheng Banking Corporation

MSB

1

30 lots

1

30 lots

MTR Corporation Limited

MTR

1

30 lots

1

30 lots

China National Building Material Company Limited

NBM

1

30 lots

1

30 lots

New China Life Insurance Co. Ltd

NCL

2

15 lots

2

15 lots

New World Development Company Limited

NWD

1

30 lots

1

30 lots

Ping An Insurance (Group) Company of China, Limited

PAI

1

30 lots

1

30 lots

PetroChina Company Limited

PEC

1

30 lots

1

30 lots

PICC Property and Casualty Company Limited

PIC

1

30 lots

1

30 lots

The People’s Insurance Company (Group) of China Limited

PIN

1

30 lots

1

30 lots

GCL-Poly Energy Holdings Limited

PLE

1

30 lots

1

30 lots

Guangzhou R&F Properties Company Limited

RFP

1

30 lots

1

30 lots

Sands China Limited

SAN

1

30 lots

1

30 lots

Sun Hung Kai Properties Limited

SHK

2

15 lots

2

15 lots

Standard Chartered PLC

STC

1

30 lots

1

30 lots

Swire Pacific Limited 'A'

SWA

2

15 lots

2

15 lots

Tencent Holdings Limited 

TCH

1

30 lots

1

30 lots

Tracker Fund of Hong Kong

TRF

1

30 lots

1

30 lots

The Wharf (Holdings) Limited

WHL

2

15 lots

2

15 lots

Want Want China Holdings Limited

WWC

1

30 lots

1

30 lots

Agricultural Bank of China Limited

XAB

1

30 lots 

1

30 lots 

Bank of China Limited 

XBC

1

 30 lots

1

30 lots 

China Construction Bank Corporation 

XCC

1

30 lots 

1

30 lots 

Industrial and Commercial Bank of China Limited 

XIC

1

30 lots 

1

30 lots

Yanzhou Coal Mining Company Limited

YZC

2

15 lots

2

15 lots

Zijin Mining Group Company Limited 

ZJM

1

30 lots

1

30 lots

Changes in liquidity level are in bold
Note 1 : This is a synthetic ETF

#   Stock Options

CQMM should provide bid / offer quotes in at least 50 option series chosen from the following option series:    
 

Contract Month

Option Series

Series For Selection

Call Series

Put Series

Spot month

Nearest Out-of-the-Money

7

7

Nearest In-the-Money

2

2

Second Calendar month

Nearest Out-of-the-Money

7

7

Nearest In-the-Money

2

2

Third Calendar month

Nearest Out-the-Money

7

7

Nearest In-of-the-Money

2

2

Fourth Calendar month

Nearest Out-the-Money

7

7

Nearest In-of-the-Money

2

2

First Quarter month

Nearest Out-the-Money

7

7

Nearest In-of-the-Money

2

2

Second Quarter month

Nearest Out-the-Money

7

7

Nearest In-of-the-Money

2

2

Third Quarter month

Nearest Out-the-Money

7

7

Nearest In-of-the-Money

2

2

Total

126

 
Market Maker Incentives for Stock Options 

Stock
Options
Tier

Trading Requirement

Market
Maker
Fee (HK$)

Standard
Exchange
Fee (HK$)

Tier 1 

 

Response to Total
Quote Requests in a Month

70% or more

1.50

3.00

less than 70%

3.00

3.00

Provision of Continuous Quotes
in the Trading Hours in a Month

70% or more

1.50

3.00

less than 70%

3.00

3.00

Tier 2 

 

 

Response to Total
Quote Requests in a Month

70% or more

0.80

1.00

less than 70%

1.00

1.00

Provision of Continuous Quotes
in the Trading Hours in a Month

70% or more

0.80

1.00

less than 70%

1.00

1.00

Tier 3^ 

 

 

Response to Total
Quote Requests in a Month

70% or more

0.40

0.50

less than 70%

0.50

0.50

Provision of Continuous Quotes
in the Trading Hours in a Month

70% or more

0.40

0.50

less than 70%

0.50

0.50

 

 
RMB Currency Futures 

USD/CNH Futures

Market Making Obligation

Provision of
Continuous Quotes (CQ)

Response to
Quote Requests (QR)

Assigned Contract

All 9 contract months
[i.e. Spot month, the next three calendar months and the next five calendar quarter months]
 

Trading Requirement

Provision of CQ for not less than 70% of the trading hours in each calendar month

Response to not less than 70% of the QR in each calendar month
 

Maximum Time Limit for Responding to QR
 

N/A

Response to a QR within 10 seconds

Maximum Bid/Offer Spread
 

20 ticks for spot and next calendar months 
50 ticks for third and fourth calendar months
80 ticks for other calendar months

Minimum Quote Size
 

A minimum of 10 contracts

 
Market Maker Incentives for RMB Currency Futures

Product

Market Maker Fee
(RMB)

Standard Exchange Fee
(RMB)

USD/CNH Futures

1.60

8.00

 Liquidity Providers on EUR/CNH, JPY/CNH, AUD/CNH and CNH/USD Futures

  

Liquidity Provider Obligation

Provision of Continuous Quotes (CQ)

Assigned Contract

All contract months

Trading Requirement

Provision of CQ for not less than 70% of the trading hours in each calendar month

Maximum Bid/Offer Spread
 

· EUR/CNH Futures: 50 ticks for spot and next months, 80 ticks

for next two quarter months

· JPY/CNH Futures: 50 ticks for spot and next months, 80 ticks

for next two quarter months

· AUD/CNH Futures: 50 ticks for spot and next months, 80 ticks

for next two quarter months

Minimum Quote Size

A minimum of 10 contracts

Liquidity Provider Obligation

Provision of Continuous Quotes (CQ)

Assigned Contract

All contract months

Trading Requirement

Provision of CQ for not less than 50% of the trading hours in each calendar month

Maximum Bid/Offer Spread
 

· CNH/USD Futures: 5 ticks for spot and next months, 15 ticks

for first and second quarter months, 25 ticks for other contract months

Minimum Quote Size

A minimum of 10 contracts

 

Liquidity Provider Incentives for EUR/CNH, JPY/CNH, AUD/CNH and CNH/USD Futures

(i)   80% rebate of trading fee; and

(ii)  Certain connection subsidies depending on the number of the Additional RMB Currency Futures products which the Liquidity Providers provide liquidity for.

 

RMB Currency Options – USD/CNH Options

-     - Liquidity Provider Providing Continuous Quotes (CQLP)

-     - Liquidity Provider Responding to Quote Requests (QRLP)   

       

Liquidity Provider Obligations

CQLP

QRLP

Assigned Option Series

Not less than 50 option series*

All QR issued

Quoting Obligation

Provision of CQ not less than 50% of the trading hours in each calendar month
 

Response to not less than 50% of the QR in each calendar month

Maximum Time Limit for

Responding to QR

N/A

Response to a QR within 90 seconds of the QR

Minimum Quote Size
 

 Not fewer than 5 contracts
 

Maximum Bid/Offer Spread

Contract Month

Max. bid/offer spread

Spot, 1st Calendar Month

70 pips

2nd, 3rd Calendar and 1st Quarter Month

90 pips

2nd Quarter Month

120 pips

3rd Quarter Month

140 pips

4th Quarter Month

160 pips

Minimum Display Time

N/A

Not less than 20 seconds, unless a change in the price level of the Spot Month USD/CNH Futures Contracts occurs during the 20 seconds display period, in which case, liquidity providers may change their quotes

* Provision of bid / offer quotes chosen from the following option series: 

 

Contract Month

Options Series For Selection

Call

Put

Spot Month

5

5

1st Calendar Month

5

5

2nd Calendar Month

7

7

3rd Calendar Month

9

9

1st Quarter Month

9

9

2nd Quarter Month

13

13

3rd Quarter Month

17

17

4th Quarter Month

20

20

Subtotal

85

85

Total

170

   

Liquidity Provider Incentives for USD/CNH Options

Upon fulfilling the quoting obligations, the CQLP or QRLP can receive 80% trading fee rebate of USD/CNH Options contracts and certain connection depending on the quoting type and the number of assigned option series.

-     HIBOR Futures

One-Month HIBOR Futures (HB1)

Market Making
Obligation

Provision of
Continuous Quotes (CQ)

Response to
Quote Requests (QR)

Assigned Contract
 

Not less than first 3 contract months

Trading Requirement

Provision of CQ for not less than 70% 
of the trading hours in each calendar month
 

Response to not less than 70%
of the QR in each calendar month

Maximum Time Limit for Responding to QR
 

N/A

Within 30 seconds on receipt of a QR

Minimum Display Time
 

Not less than 15 seconds

Maximum Bid/Offer Spread
 

Not greater 10 Minimum Fluctuations

Not greater 7 Minimum Fluctuations

Minimum Quote Size
 

Not less than 5 contracts

Not less than 10 contracts

Non-Market Making Hours

A market maker shall not be required to meet the trading requirements during the following period:

1.  The first 5 minutes of each morning trading session; and
2.  11:30 a.m. to 12:00 noon and from 1:30 p.m. to 2:00 p.m. on each Business Day.

 
Three-Month HIBOR Futures (HB3)

Market Making
Obligation

Provision of
Continuous Quotes (CQ)

Response to
Quote Requests (QR)

Assigned Contract
 

Spot contract month plus not less than the first 4 quarter contract months

Trading Requirement

Provision of CQ for not less than 70%
of the trading hours in each calendar month
 

Response to not less than 70%
of the QR in each calendar month

Maximum Time Limit for Responding to QR

N/A

Response to a QR on an assigned
contract month within 30 seconds of the QR
 

Minimum Display Time
 

Not less than 15 seconds

Maximum Bid/Offer Spread

Not greater than 10 minimum fluctuations
 

not greater than 7 minimum fluctuations

Minimum Quote Size
   

not less than 5 contracts

not less than 10 contracts

Non-Market Making Hours

A market maker shall not be required to meet the trading requirements during the following period:

1.  The first 5 minutes of each morning trading session; and
2. 11:30 a.m. to 12:00 noon and from 1:30 p.m. to 2:00 p.m. on each Business Day.

    
Market Maker Incentives for HIBOR Futures

Product

Market Maker Fee
HK$

Standard Fee
HK$

One-Month HIBOR Futures
Three-Month HIBOR Futures

1.00

5.00

The appointments of LPs are subject to commercial agreements between the Exchange and LPs in terms of price quoting services and incentives.  The Chief Executive of HKFE may, at his sole discretion, waive parts of the obligations in view of adverse market conditions which may arise from time to time. 

 

Commodity Products 

London Aluminium/Zinc/Copper/Nickel/Tin/Lead Mini Futures

Liquidity Provider Obligation

Provision of Continuous Quotes (CQ)

Assigned contract

Please see maximum bid/offer spread for each contract month

Maximum Bid/Offer Spread – Copper/ Zinc/Aluminium

7 ticks for spot month, next three calendar months; 9 ticks for 5th and 6th calendar months

Maximum Bid/Offer Spread - Nickel

10 ticks for spot month, next three calendar months; 12 ticks for 5th and 6th calendar months

Maximum Bid/Offer Spread - Lead

16 ticks for spot month, next three calendar months

Maximum Bid/Offer Spread - Tin

40 ticks for spot month, next three calendar months

Minimum Percentage of Liquidity Providing Hours

60% of Liquidity Providing Hours for each assigned contract

Minimum Quote Size

5 contracts

 Incentives:

100% trading fee rebate and certain cash sponsorship for trading London Aluminium/Zinc/Copper/Nickel/Tin/Lead Mini Futures.