Frequently Asked Questions 
20/03/2009 
 

Mini-Hang Seng Index Options

Frequently Asked Questions

 

  1. What are Mini-Hang Seng Index (HSI) Options?

    Mini-HSI Options are based on the Hang Seng Index.  Therefore the buyer of Mini-HSI option has the right to buy (Call Option) or the right to sell (Put Option) the Hang Seng Index at the strike price on the Expiry Day.  Mini HSI options are European-style and cash settled.

  2. How are Mini-HSI Options different from HSI Options?

    Mini-HSI Options have a contract multiplier of $10 while the contract multiplier for HSI Options is $50.  Mini-HSI Options have four contract months (i.e. spot month, the next calendar month and the next two calendar quarter months) whereas HSI Options have eight contract months (i.e. spot month, the next two calendar months, the next three calendar quarter months and the next five months of June and December).

    Trading fees and levies for Mini-HSI Options are $2.16 per contract per side compared with $10.80 per contract per side for HSI Options.

  3. How are Mini-HSI Options traded?

    All HKEx futures and options contracts are traded on HKEx’s electronic derivatives trading platform, where all orders are matched and executed through the application of a strict price/time priority matching methodology. 

  4. Are there any Market Makers for Mini-HSI Options?

    Yes.  Professional Market Makers will supply bid and ask quotes ensuring trading liquidity and market depth for investors. 

  5. What are the trading hours for Mini-HSI Options, and is there a Pre-Market Opening period?

    The trading hours are 9:45 a.m. to 12:30 p.m. (morning session) and 2:30 p.m. to 4:15 p.m. (afternoon session).  There is no Pre-Market Opening period for Mini-HSI Options.

  6. Can an investor liquidate HSI Options positions against offsetting positions in Mini-HSI Options with the same strike price and contract month?

    Yes.  HSI Options and Mini-HSI Options are fungible, which means opposite positions in these contracts will be netted at the ratio of one HSI Option per five Mini-HSI Options.

  7. Where can investors get Mini-HSI Options price information?

    A list of information vendors that provide Mini-HSI Options price information and their product codes are available at:

    List of information vendors

 

For more information on Mini-HSI Options, please visit the following web page: Mini-Hang Seng Index Futures & Options