Market Maker Obligations and Incentives 
04/09/2017 
 
Obligations of LP

LP will be required to meet at least the following obligations:

Commodities Futures

Type of LP

Minimum LP Quoting Obligations

Type

Contract Months

Quote Size

Maximum Bid/Offer Spread

Minimum % of Trading Hours Coverage

Physically settled USD Gold Futures and/ or physically settled CNH Gold Futures

Type 1

Continuous quotes (CQ)

Spot, and the next 2 calendar months; and the next Jun and Dec contracts

3 contracts

At least Spot, next 2 calendar months, and next Jun and Dec contracts; 3 ticks (Optional) Other calendar months: 5 ticks

70% of trading hours in a month*

Type 2

50% of trading hours in a month*

Type 3

3 ticks, except that the max. bid/offer spread shall be 5 ticks for the farthest contract month

70% of trading hours in a month*

Type 4

50% of trading hours in a month*

 

*either T or T+1 session

 

For more details of the market maker obligations and incentives, please refer to the HKEX website at   

http://www.hkex.com.hk/eng/market/partcir/hkfe/2017/Documents/MKD_CMD_001_17_e.pdf

https://www.hkex.com.hk/chi/market/partcir/hkfe/Documents/CMD%20Revised%20Plan%20B_circular_e_20170829%20(sfc)%20vf.pdf