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Mini-Hang Seng Index Options

Mini-Hang Seng Index Futures & Options

To meet the needs of retail investors with an interest in the Hong Kong stock market, the Hong Kong Futures Exchange (HKFE) has introduced a Mini-Hang Seng Index (Mini-HSI) futures contract since 9 October 2000.  To complement Mini-HSI futures, Mini-HSI option contracts was launched on 18 November 2002.

The compact, Mini-HSI futures & option contracts are based on Hong Kong's benchmark Hang Seng Index (HSI), which is also the underlying index for the larger sized HSI futures & option contracts. The contract multiplier of the Mini-HSI futures & option contracts are HK$10.00 or one-fifth the size of the HSI futures & option contracts. Same as the HSI futures & option contracts, the settlement method for the mini contracts are cash settled.

Local retail investors who have less risk capital and lower hedging requirements will find the Mini-HSI futures and option contracts the most appropriate investment tools as well as hedging instruments for managing their market risk.

Advantages

  • Tailor-made for retail investors
    The Mini-HSI futures & option contracts inherit the advantages of the larger sized HSI futures & option contracts but are tailored for individuals with limited risk capital. The smaller contract size allows experienced and novice investors alike to participate in the performance of the constituent stocks in the index in a graduated scale.
  • Low Costs
    As the Mini-HSI futures & option contracts is one-fifth the size of the HSI futures & option contracts, the corresponding margin requirements and commission are much lower.
  • Margin Offset
    One hundred per cent margin offset between Mini-HSI and HSI futures, and between Mini-HSI and HSI options allows for flexible investment management
  • Electronic Trading Platform
    Like all other products traded on the Exchange, Mini-HSI futures & option contracts will be traded electronically on HKATS, where all orders are matched based on price and time priority. Bid, offer and transaction prices are disseminated in real-time to the public and providing the highest level of price and market transparency.
  • Clearing House Guarantee
    Mini-HSI futures & option are registered, cleared and guaranteed by the HKFE Clearing Corporation (HKCC), a wholly-owned subsidiary of the HKFE. The HKCC acts as the counter-party to all open contracts, which effectively eliminates counter-party risks between its HKCC Participants. The HKCC guarantee does not cover an HKCC Participant's obligations to its clients. Investors should exercise due care and diligence when deciding through whom they will conduct business.

Updated 20 Oct 2017


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Contract Summary

Item Contract Terms
Underlying Index Hang Seng Index
HKATS Code MHI
Contract Multiplier HK$10 per index point
Minimum Fluctuation One index point
Contract Months Spot, next calendar month, & next two calendar quarter months
Exercise Style European Style
Option Premium Quoted in whole index points
Strike Prices Index points                                     Intervals
At or above 2,000 but below 8,000         100
At or above 8,000                                     200
Trading Hours 9:15 am - 12:00 noon & 1:00 pm - 4:30 pm
(Expiring contract month closes at 4:00 pm on the Expiry Day)
Expiry Day The Business Day immediately preceding the last Business Day of the Contract Month
Official Settlement Price The average of quotations of Hang Seng Index taken at (i) five (5) minute intervals from five (5) minutes after the start of, and up to five (5) minutes before the end of, the Continuous Trading Session of SEHK; and (ii) the close of trading on SEHK on the Expiry Day.
Transaction Costs Exchange Fee                    HK$2.00
Commission Levy               HK$0.10
Commission Rate               Negotiable

Please visit “Rules, Regulations and Procedures of the Futures Exchange” of “Trading Rules” under “Rules and Regulations” of the HKEx website for full contract specifications. 



Margin Table

Trading Fees and Commissions

Exchange Fee
HK$2.00 per contract per side
Commission Levy
HK$0.10 per contract per side
Investor Compensation Levy*
HK$0.00 per contract per side
Total
HK$2.10 per contract per side
Commission
Negotiable
* The amount indicated above is subject to change from time to time.

Online Derivatives Trading

Below is the list of the Exchange Participants who provide online derivatives trading services for investors.

(Product: Index Futures and Options / Currency Futures / Commodity Futures / Interest Rate Futures)

Exchange Participant Contact Number Email
BOCI Securities Ltd. (852) 2121-0088 service@bocigroup.com
BOCOM International Securities Ltd.  (852) 2297-9888 enquiry@bocomgroup.com
Bright Smart Futures & Commodities Co. Ltd. (852) 2537-1371 broker@bsgroup.com.hk
Celestial Commodities Ltd. (852) 2663-8888 hotline@cashon-line.com
CES Capital International (Hong Kong) Co. Ltd. (852) 3971 1052 cescapital@kiiik.com
CN First International Futures Limited  (852) 3897-2000 cnfservice@cnfirst.com.hk 
Changjiang Futures (HK) Ltd. (852) 2823-0389 futuresCS@cjsc.com.hk
China Maike Futures International Limited (852) 2885 2968 cs@maike.com.hk
Chief Commodities Ltd. (852) 2500-9128 futures_dept@chiefgroup.com.hk
Chong Hing Commodities & Futures Ltd. (852) 3768-9988 info@chcf.com.hk
Chow Sang Sang Futures Ltd. (852) 2581-7338 cs.trade@338.net
Christfund Futures Ltd. (852) 2147-9898 maggie.lam@christfund.com
una.zhao@christfund.com
Cinda International Futures Ltd. (852) 2235-7789 cs@cinda.com.hk
CITIC Securities Futures (HK) Ltd. (852) 2237-6899 info@citics.com.hk
Core Pacific - Yamaichi Futures (H.K.) Ltd. (852) 2166-3888 info@cpy.com.hk
CSC Futures (HK) Ltd. (852) 2105-1299 futures@e-capital.com.hk
East Asia Futures Ltd. (852) 3608-8181 info@eafutures.com.hk
Emperor Futures Ltd. (852) 2919-2919 efl.cs@emperor.com.hk
Enlighten Futures Ltd. (852) 2152-3321 services@enlighten.com.hk
Essence Futures (Hong Kong) Limited (852)2213-1888

service@eif.com.hk

Excalibur Global Finanical Group Ltd. (852) 2844-9868 jannylee@excalibur.com.hk
Finet Securities Ltd. (852) 2169-0088 cs@finet365.com
First Shanghai Futures Ltd. (852) 2532-1580 cs@mystockhk.com
Fuji Hong Kong Commodities Co. Ltd. (852) 2559-1041 sales@fujihk.com
admin@fujihk.com
Fulbright Futures Ltd. (852) 2121-8333 cs@fulbright.com.hk
Gelin Dahua Futures (Hong Kong) Ltd. (852) 3192-1000 cs@greenfutures.com.hk
GF Futures (HK) Co. Ltd. (852) 3719-1199 futurescs@gfgroup.com.hk
Glory Sky Global Markets Ltd. (852) 3420-1000 enquiry@glorysky.ws
Goldenway Investments (HK) Ltd. (852) 3719-9733 cs@gwtrade.hk
Goldin Equities Ltd.  (852) 3960-7827 enquiry@goldinequities.hk
Grand Investment (Futures) Ltd. (852) 3550-6988 cs@grandfg.com
GuocoCommodities Ltd. (852) 2218-2818 info@guococap.com
Guotai Junan Futures (Hong Kong) Ltd. (852) 2509-9277 futures@gfjas.com.hk
Guoyuan Futures (Hong Kong) Ltd. (852) 3769-6888 gyzq@gyzq.com.hk
Haitong International Futures Ltd. (852) 3583-3388 csdept@htisec.com
Hantec Futures Ltd. (852) 2523-7571 thomasmo@hantec.hk 
Hong Kong International Futures Ltd. (852) 2853-8027 enquiry@hnahki.com
I-Access Investors Ltd. (852) 3741-0373 info@i-access.com
ICBC International Futures Ltd. (852) 2683-6216 freeman.to@icbci.com.hk
iSTAR International Futures Co. Limited (852) 3900-1701 cs@istartrade.com
Kaiser Futures Ltd. (852) 2815-8033 cs@kaisergroup.com.hk
Karl-Thomson Commodities Co. Ltd. (852) 2810-9062 admin@ktg.com.hk
KGI Futures (Hong Kong) Ltd. (852) 2878-5555 info@kgia.com
Kim Eng Futures (Hong Kong) Ltd. (852) 2268-0660 cs@kimeng.com.hk
Kingsway Financial Services Group Ltd. (852) 2283-7373 customerservice@sunwahkingsway.com
Marigold International Securities Ltd. (852) 3750-8898 cs@misl.com.hk
Mayfair Pacific Financial Group Ltd. (852) 3192-1108 simpson.yam@mayfairpacific.com
Metro Capital Futures Limited (852) 3944-8008 metrocap@metrocap.com.hk
Oriental Wealth Futures Ltd. (852) 2879-9868 admin@o-wealth.com
Peace Town Financial Services Ltd. (852) 2822-8338 info@pt123.com
Phillip Commodities (HK) Ltd. (852) 2277-6611 futures@phillip.com.hk
Po Sang Futures Ltd. (852) 2815-4655 psf@bochk.com
Prudential Index Trading Co. Ltd. (852) 2143-3999 samng@pru.com.hk
Quam Securities Co. Ltd. (852) 2847-2203 qscs@quamgroup.com
RHB OSK Futures Hong Kong Ltd. (852) 2103 5657 rhboshk.hk.customer.service@rhbgroup.com
Realink Financial Trade Ltd. (852) 2823-2828 cs@realink.com.hk
Sanfull Futures Ltd. (852) 2853-2128 futures@sanfull.com.hk
Shacom Futures Ltd. (852) 2207-2837 contact@shacomfutures.com.hk
Shenyin Wanguo Futures (H.K.) Ltd. (852) 2250-8298 customer.service@sywg.com.hk
Skyway Futures Ltd. (852) 2907-2300 cs@sws.hk
South China Commodities Ltd. (852) 2111-2222 hotline@sctrade.com
Stockwell Commodities Ltd. (852) 2509-4384 bennylo@stockwellonline.com
Success Futures and Foreign Exchange Ltd. (852) 2598-1027 enquiry@successfn.com
Sun Hung Kai Commodities Ltd. (852) 2822-5001 cs@shkf.com
futures.trader@shkf.com
Tanrich Futures Ltd. (852) 2238-9225 enquiry@tanrich.com
Taiwan Concord Capital Securities (HK) Ltd. (852) 3405-7305 fdealer@concordcapital.com.hk
Telecom Digital Securities Ltd. (852) 8118-1133 ftcontact@tdsecurities.com.hk
T G Securities Ltd. (852) 2905-9529 info@tgshk.com
Tianda Securities Ltd. (852) 3972-0688 enquiry@tiandafinancial.com
Timber Hill Securities Hong Kong Ltd. (852) 2156-7907 sales@interactivebrokers.com.hk
Tung Shing Securities (Brokers) Ltd. (852) 3609-6809 tsfinancialservices@tsbrokers.com
United Simsen Securities Ltd. (852) 2740-9688 
(852) 2179-3992                
cs@simsen.com
Upbest Commodities Co. Ltd. (852) 2545 3298 upc@upbest.com
VC Futures Ltd. (852) 2913-6332 enquiry@vcgroup.com.hk
Wing Fung Futures Ltd. (852) 2303-8690 cs@wfgold.com
Wing Lung Futures Ltd. (852) 2543-3622 wlfutures@winglungbank.com
Yuanta Securities (Hong Kong) Co. Ltd. (852) 3555-7878 hk.services.brk@yuanta.com
 

Below is the list of the Exchange Participants who provide online derivatives trading services for investors.

(Product: Stock Options)

 

Exchange Participant

Contact Number

Email

Bright Smart Securities (International (H.K.) Ltd.

(852) 2537-1371 broker@bsgroup.com.hk
Chief Securities Ltd. (852) 2500-9128 equitiesoption@chiefgroup.com
Core Pacific - Yamaichi Securities (H.K.) Ltd. (852) 2166-3888 info@cpy.com.hk
Emperor Securities Ltd. (852) 2919-2919 esl.cs@emperorgroup.com
Grand Investment (Securities) Ltd. (852) 3550-6988 cs@grandfg.com
I-Access Investors Ltd. (852) 2890-8019 info@i-access.com
ICBC International Securities Ltd. (852) 2683-6216 freeman.to@icbci.com.hk
KGI Securities (Hong Kong) Ltd. (852) 2878-5555 info@kgia.com
Phillip Securities (HK) Ltd. (852) 2277-6622 option@phillip.com.hk
Prudential Brokerage Ltd. (852) 2143-3999 samng@pru.com.hk
South China Secuirties Ltd. (852) 2111-2222 hotline@sctrade.com
Sun Hung Kai Investment Services Ltd. (852) 2822-5001 enquiry@SHKdirect.com
Tanrich Securities Co. Ltd. (852) 2238-9222 option@tanrich.com
Timber Hill Securities Hong Kong Ltd. (852) 2156-7907 sales@interactivebrokers.com.hk

 

Disclaimer :
Hong Kong Exchanges and Clearing Ltd endeavors to ensure the accuracy and reliability of the information provided, but does not guarantee its accuracy and reliability and accepts no liability (whether in tort or contract or otherwise) for any loss or damage arising from any inaccurancies or omissions.

List of Market Makers or Liquidity Providers

Equity Index Products

There are liquidity provider and 3 types of market makers in the equity index products market:

- Primary Market Maker (PMM); and

- Market maker providing continuous quotes (CQMM); and

- Market maker responding to quote request (QRMM). 

 

Below is the list of Liquidity Provider, PMM, CQMM and QRMM:

 
 
Market Makers / Liquidity Providers
 APC BNP CFT CTD HKF IBG IMC ISS LQC MPF NHT NRA OPT SGS  TBR YKR
Hang Seng Index Options   *   P * * * * * P P P * * *
Mini-Hang Seng Index Options       * * * * * * * * * *   *
Hang Seng China Enterprises Index Options    *   P * * *   * P P P * * *
Mini-Hang Seng China Enterprises Index Options        *     * *     * *   *   *
HSI Dividend Point Index Futures   *                            
HSCEI Dividend Point Index Futures √  *                              
CES China 120 Index Futures            L     L          L
Sector Index Futures - CES Gaming Top 10 Index Futures                   L            
Sector Index Futures - Hang Seng  IT Hardware Index Futures 
                   L            
Sector Index Futures - Hang Seng Mainland Banks Index Futures      L     L L     L     L   L L
Sector Index Futures - Hang Seng Mainland Healthcare Index Futures                   L            
Sector Index Futures - Hang Seng Mainland Oil & Gas Index Futures           L L     L     L   L L
Sector Index Futures - Hang Seng Mainland Properties Index Futures             L     L     L      
Sector Index Futures - Hang Seng Software & Service Index Futures                    L            

L - Denotes Liquidity Provider
P - Denotes PMM
* - Denotes CQMM
√ - Denotes QRMM

Market Making/Liquidity providing obligations and Incentives

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
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
Hang Seng China Enterprises Index Options
Mini-Hang Seng China Enterprises Index 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 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). 

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-Hang Seng China Enterprises Index 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 Hang Seng China Enterprises Index 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-Hang Seng China Enterprises Index 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 Hang Seng China Enterprises Index Options 
Month Min. Quote Size
1st, 2nd, 3rd, 4th calendar 5 contracts
1st , 2nd, 3rd quarter 3 contracts
For Mini-HSI Options and Mini-Hang Seng China Enterprises Index Options 
Month Min. Quote Size
1st , 2nd calendar 5 contracts
1st , 2nd quarter 3 contracts

 

** For Mini-HSI Options and Mini-Hang Seng China Enterprises Index 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
Hang Seng China Enterprises Index Futures (HHIF) n.a. 1.00 (MM in HHIO or MCHO) 3.50
Hang Seng China Enterprises Index Options (HHIO) 0.50 1.00 (MM in HHIFor MCHO) 3.50
Mini-Hang Seng China Enterprises Index Futures (MCHF) n.a. 0.70 (MM in HHIF or HHIO or MCHO) 2.00
Mini-Hang Seng China Enterprises Index 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

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