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MSCI Asia ex Japan Index Futures

(Tentative Launch Date: 11 June 2018 - Subject to Regulatory Approval)  
Introduction

The MSCI AC Asia ex Japan Net Total Return Index (“MSCI AxJ”) is a well-established benchmark representing Asia regional (excluding Japan) equity market performance.  The MSCI AxJ is complied by MSCI Limited (“MSCI”) and was launched in January 2001.  It currently comprises securities in two Developed Markets (Hong Kong and Singapore) and nine Emerging Markets (Mainland China, India, Indonesia, Korea, Malaysia, Pakistan, the Philippines, Taiwan and Thailand).  With 646 constituent stocks, it covers approximately 85% of the freefloat-adjusted market capitalisation in each country and the total freefloat-adjusted index market capitalisation was USD 4,748 Bn as of 30 March 2018.  The index is calculated in a net total return form (i.e. reinvestment of net dividend payout into the index portfolio).

 

Uses of MSCI AxJ Futures

The introduction of the MSCI AxJ Futures contract aims to meet the trading and hedging needs of investors who have exposure to large and mid-cap companies in developed and emerging Asian countries (ex-Japan) in a cost effective manner.  Asset managers and banks can make use of MSCI AxJ Futures for cash equitisation and manage market, settlement and liquidity risks without cross zone trading issue. 

The constituent list and vendor codes can be found in MSCI websites https://www.msci.com/constituents and https://www.msci.com/ticker-codes respectively. 


Updated 25 May 2018

Contract Summary

MSCI AxJ Futures Contract Specifications

Items

Key Contract Terms

Underlying Index

MSCI AC Asia ex Japan Net Total Return Index (USD)

HKATS Code

MXJ

Trading Currency

USD

Contract Multiplier

USD 100 per index point

Contract Months

The nearest five calendar quarter months

(i.e. quarter months are March, June, September and December)

 Calendar Spreads  Cover 1st spot quarter month to other quarter months

Trading Hours

(Hong Kong Time)

8:30 a.m. – 4:30 p.m. (Day Session);

5:15 p.m. – 1:00 a.m. (AHT Session)

(Expiring contract months closes at 4:30 p.m. on the Last Trading Day)

Last Trading Day (LTD)

The 3rd Friday of the month; if it falls on a HK public holiday, LTD will be the preceding Business Day which is also a business day in HK

Exchange Fee

USD 0.5 per contract per side

Cash Settlement Fee

USD 0.5 per contract per side on final settlement

Commission Levy

USD 0.07^ per contract

Position Limit

110,000 net contracts long or short for all contract months combined

Large Open Position

500 open contracts, in any one contract month

Holiday Schedule

Follows Hong Kong public holiday schedule

^The USD equivalent of HKD 0.54 per contract at the exchange rate determined by the HKFE from time to time

Updated 24 May 2018

Trading Fees and Commission

MSCI Asia Ex Japan Index Futures

Exchange Fee USD 0.50 per contract per side
Commission Levy USD 0.07^ + per contract per side
Investor Compensation Levy* USD 0.00  per contract per side
 Total  USD 0.57 per contract per side
 Commission  Negotiable

^The USD equivalent of HKD 0.54 per contract at the exchange rate determined by the HKFE from time to time
+ The Commission Levy will be exempted for the first six months of trading, i.e. from 11 June 2018 to 10 December 2018
* The amount indicated above is subject to change from time to time.

Updated 09 May 2018

Updated 25 May 2018

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