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BRICS Futures

Growing BRICS Markets

BRICS (Brazil, Russia, India, China and South Africa) countries have become vital sources of growth in the global economy. From 2000 to 2010, the GDP growth of BRICS countries significantly outperformed the rest of the world.

BRICS Exchanges Alliance

HKEx, BM&FBOVESPA S.A. – Bolsa de Valores, Mercadorias e Futuros (BVMF) from Brazil, Open Joint Stock Company "Moscow Exchange MICEX-RTS" (Moscow Exchange) from Russia, BSE Ltd. (BSE) from India, and JSE Ltd. (JSE) from South Africa formed an exchange alliance in 2012, cementing closer cooperation among BRICS exchanges.   The alliance enables members to expand their product offerings beyond their home markets and gives investors exposure and easier access to the dynamic and emerging BRICS economies.

BRICS Exchanges’ Benchmark Index Futures at HKEx

The listing of benchmark equity index derivatives on the boards of each of the alliance members marks the first phase of cooperation.  The introduction of BRICS Exchanges’ benchmark index futures to HKEx’s marketplace will diversify HKEx’s product offerings, giving investors further access to emerging BRICS markets.  Under the alliance, the following benchmark equity index futures will be listed on the Hong Kong Futures Exchange Ltd (HKFE), a wholly-owned subsidiary of HKEx:

  • Brazil’s IBOVESPA futures;
  • Russia’s MICEX Index futures;
  • India’s S&P BSE SENSEX Index futures; and
  • South Africa’s FTSE/JSE Top40 futures.

HKEx’s Stock Index Futures on BRICS Markets

HKEx’s stock index futures on BRICS benchmark indices are contracts listed and traded on HKFE.  They are cash settled futures contracts traded in HKD; the trading hours and holiday schedule follow HKFE’s existing market practice.  The contract design enables convergence with home market contracts in terms of last trading day and final settlement price to facilitate hedging and arbitrage. 

 

Advantages of Trading BRICS Exchanges’ Benchmark Index Futures at HKEx

The trading opportunities with BRICS Exchanges’ benchmark index futures contracts at HKEx are as follows:

Easy to Gain Exposure to BRICS Markets

Asian investors can easily gain exposure to the BRICS markets using HKD in an Asian time zone.

Effective Hedging Tool

Investors can manage their risk exposure in BRICS market related products (such as stock portfolios, ETFs, investment funds and structured products).

Cross-market Arbitrage Opportunities

Traders may explore cross market arbitrage opportunities between HKEx and their home markets.

High Cost-effectiveness

HKEx’s futures contracts are cost-effective and leveraged tools for investors.

Low Counterparty Risk

Counterparty risk can be reduced by the HKFE Clearing Corporation Limited, an HKEx subsidiary which acts as a central counterparty to every trade.

 

Quick links to BRICS Exchanges


BRICS Exchanges’ benchmark index


The Underlying Exchange


Index Information

Brazil

BM&FBOVESPA

http://www.bmfbovespa.com.br/en-us/home.aspx?idioma=en-us

IBOVESPA

http://www.bmfbovespa.com.br/indices/ResumoIndice.aspx?Indice=IBOVESPA&Idioma=en-US

Russia

Moscow Exchange

http://rts.micex.ru/en/

MICEX

http://www.micex.com/marketdata/indices/shares/composite#&index=MICEXINDEXCF

India

BSE

http://www.bseindia.com/

S&P BSE SENSEXIndex

http://www.bseindia.com/about/abindices/preface.asp

South Africa

Johannesburg Stock Exchange

www.jse.co.za/brics



Contract Summary

BRICS Futures 

Contract

IBOVESPA Futures

MICEX Index Futures

S&P BSE SENSEX Index Futures

FTSE/JSE Top40 Futures

Underlying Index

IBOVESPA

MICEX Index

S&P BSESENSEX Index

FTSE/JSE Top40IndexNote

Contract Multiplier

HK$5 per Index point

HK$100 per Index point

HK$10 per Index point

Contract Months

Two nearest even-numbered calendar months

Two nearest quarter calendar months

Spot Month and the next calendar month

Two nearest quarter calendar months

Minimum Fluctuation

5 Index points

0.05 Index point

1.00 Index point

1 Index point

Maximum Fluctuation

10% of daily settlement price of the nearest contract month determined by BVMF on the previous Business Day

Nil

 

Trading Hours (including Last Trading Day)

9:15 a.m. – 4:30 p.m.(Hong Kong Time)

Final Settlement Day

The second Business Day after the Last Trading Day

Last Trading Day

The Last Trading Day determined by BVMF (i.e. usually the Wednesday closest to the 15th calendar day of the Contract Month)

The Last Trading Day determined by Moscow Exchange

(i.e. usually the 15th calendar day of the Contract Month)

The Last Trading Day determined by BSE (i.e. usually the last Thursday of the Contract Month)

 

The Last Trading Day determined by JSE (i.e. usually the third Thursday of the Contract Month)

If it is not a Hong Kong Business Day, the Last Trading Day shall be the immediately preceding Hong Kong Business Day.

Final Settlement Price

The Final Settlement Price of the IBOVESPA futures at BVMF

The Final Settlement Price of the MICEX Index futures at Moscow Exchange

The Final Settlement Price of the S&P BSE SENSEX Index futures at BSE

The Final Settlement Price of the FTSE/JSE Top40 futures at JSE.

Exchange Fee

HK$10.00

HK$5.00

(Exchange fee and settlement fee are waived in the first six months of trading)

Levies

Commission Levy and Investor Compensation Levy are payable at the rate or of the amount prescribed from time to time pursuant to the Securities and Futures Ordinance.

(Commission Levy is waived for the first six months of trading)

Note:
All intellectual property rights in the index values and constituent list vest in FTSE and the JSE.  "FTSE®" is a trade mark of the London Stock Exchange Group of Companies, "JSE"  is a trade mark of the JSE Limited.


Margin Table

Trading Fees and Commission

Exchange Fee
HK$10.00 per contract per side
Commission Levy
HK$0.54 per contract per side
Investor Compensation Levy*
HK$0.00 per contract per side
Total
HK$10.54 per contract per side
Commission
Negotiable
* The amount indicated above is subject to change from time to time.
Exchange Fee
HK$5.00 per contract per side
Commission Levy
HK$0.54 per contract per side
Investor Compensation Levy*
HK$0.00 per contract per side
Total
HK$5.54 per contract per side
Commission
Negotiable
* The amount indicated above is subject to change from time to time.

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