Options Trading Rules of the Stock Exchange 
17/07/2017 
 

Options Trading Rules of the Stock Exchange

RULE(S)
  • Chapter 1 - Definitions and Interpretation
    101

    Definitions

    102-105 Interpretation
    106-107 Applicability of the Exchange Rules
    108 Amendment
    109A -109C Exclusion of Liability
    110 Governing Law
    111-113 Notice
    114-115 Transitional Provisions

  • Chapter 2 - Options Trading Exchange Participantship
    201-202 Participation
    203 Qualification
    204 Applications
    205 [Repealed]
    206-207 Approval or Refusal
    208 Registration
    209-209C Registers
    210 [Repealed]
    210A Access to HKATS
    211-214 [Repealed]

  • Chapter 3 - Options Exchange Participants' Obligations
    301 Compliance with the Options Trading Rules
    302-302C Continuing Obligations
    303-304 [Repealed]
    305 Transaction Levy
    306-309 No Transfer of Options Exchange Participantship or System Access Rights
    310-315 Resignation as an Options Exchange Participant
    316 Incapacity
    317-317A Confidentiality by the Exchange
    318 Fees

  • Chapter 4 - Options Exchange Participants and Their Clients
    401 [Repealed]
    401A-402 Options Broking Agreement
    403 [Repealed]
    404 Disclosure of Client's Information
    405-408 [Repealed]
    409-409B Restrictions on Client Business
    410 [Repealed]
    411-412 Client Contracts
    413-414 [Repealed]
    415-417 Exercise of Client Contracts
    418-421 [Repealed]
    422 Disclosure
    423 [Repealed]
    424-426A Client Margin Requirements
    427 [Repealed]
    428 Premium
    429 Set Off
    430-431 Default by Clients
    432-433 [Repealed]
    433A Client's Money
    434 Confidentiality by Options Exchange Participants
    435-441A Position Limits
    442 Exercise Limits

  • Chapter 5 - The Options Trading System
    500 General Provisions
    500A [Repealed]
    501-505 Access to the Options Trading System

    506-506C

    Establishment of Prescribed Risk Controls in HKATS

    507 Adjustments to Contracts ("Capital Adjustments")
    508 [Repealed]
    509-512 Recording of Orders and Quotes
    513-517 Recording of Trades
    517A Matching and Ranking of Orders in HKATS
    518-522A Rules for Order Entry
    522B Amendment and Cancellation of Orders
    523-523A Trade and Position Corrections
    524-528 Give-Ups
    529 Block Trades
    530-531 Contractual Relationships
    532-539A NCPs and GCPs
    540-542 Error Trades
    543 [Repealed]
    544 Disputes
    545 Limitation of Liability
    546-552 [Repealed]

  • Chapter 6 - Market Makers
    601-605 Applications for Market Maker Permits
    606-607 Form and Duration of Market Maker Permits
    608-612 Obligations of Regular Market Makers
    612A-612E Obligations of Primary Market Makers
    613-614 Rights of Market Makers
    614A-614B Identification of Jobbing Transactions
    614C-614D Recording of Hedging Activities
    615-619 Suspension, Revocation and Surrender

  • Chapter 7 - Default Procedures
    701-710 Default
    711 General
    712 Indemnity
    713-717 Suspension or Cancellation of Options Exchange Participantship
    718 Default Procedures Prevail

  • Chapter 8 - Disciplinary
    801-802 Situations Calling for Disciplinary Action
    803 Co-operation
    804 Notification
    805-806 Disciplinary Action and Procedures

  • Chapter 9 - Emergency Procedures

    901-903

    Suspension of Options Trading

    904 Typhoon Signals and Black Rainstorm Warnings
    905 Facsimile Instruction Entry


  • First Schedule

Item A1: [Repealed]
Item A2: [Repealed]
Item A3: Uniform Options Broking Agreement

Item B: [Repealed]
Item C: [Repealed]
Item D: Model Acknowledgement Letter from Options Clients in respect of SEOCH Margining on a Portfolio Basis

  • Second Schedule
Market Maker Obligations

  • Third Schedule
Regulations for Block Trades

  • Fourth Schedule
[Repealed]

  • Fifth Schedule
Trading Hours

  • Sixth Schedule
Standard Contract




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(Update No. 1 2016 of the Options Trading Rules is now available for subscription.  For those who wish to subscribe hardcopy updates to the Options Trading Rules, please complete and return the attached copy of the Updating Service Request Form.)