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HKEX Derivatives Information for US Investors

HKEx has obtained permission from the US Commodity Futures Trading Commisssion (CFTC) and US Securities and Exchange Commission (SEC) to give US investors access to certain index futures and options traded on HKEx’s markets.
B02A24241D934714AD273561037F6D6D Equity Index Futures for US Investors
The CFTC has granted no-action relief to certain HKEx listed equity index futures (Eligible Index Futures), providing access to eligible US investors. The CFTC has also granted an exemption to Hong Kong allowing HKFE participants to deal directly with US investors.
B02A24241D934714AD273561037F6D6D Eligible US Investors
B02A24241D934714AD273561037F6D6D Under no-action relief by CFTC, all US investors can trade Eligible Index Futures.
B02A24241D934714AD273561037F6D6D Eligible Index Futures
B02A24241D934714AD273561037F6D6D Hang Seng Index Futures
B02A24241D934714AD273561037F6D6D Hang Seng China Enterprises Index Futures
B02A24241D934714AD273561037F6D6D Mini-Hang Seng Index Futures
B02A24241D934714AD273561037F6D6D Mini-Hang Seng China Enterprises Index Futures
B02A24241D934714AD273561037F6D6D CES China 120 Index Futures
B02A24241D934714AD273561037F6D6D HSI Volatility Index (VHSI) Futures
B02A24241D934714AD273561037F6D6D HKFE Participants Trading Arrangement with Eligible US Investors
B02A24241D934714AD273561037F6D6D The CFTC has granted Regulation Part 30.10 Exemption for Hong Kong. HKFE participants can deal directly with US investors after the application with the US National Futures Association via the Securities and Futures Commission (SFC). (For details of the application procedure, please refer to SFC website)
B02A24241D934714AD273561037F6D6D Related Documents
B02A24241D934714AD273561037F6D6D HKEx Derivatives for US Investors Information Sheet
B02A24241D934714AD273561037F6D6D Circular - CFTC Regulation Part 30.10 Exemption for Hong Kong
B02A24241D934714AD273561037F6D6D Circular - HKEx obtains US CFTC Approval for CES 120 and VHSI Futures Contracts
B02A24241D934714AD273561037F6D6D Circular - No-Action Relief from U.S. Commodity Futures Trading Commission (CFTC) in Connection with the Offer and Sale in the U.S. of Mini Futures Contracts on Hang Seng Index (HSI) and Hang Seng China Enterprises Index (HSCEI)
B02A24241D934714AD273561037F6D6D Equity Options for US Investors
HKEx has filed a Class No-action Relief to the SEC in order to allow certain US investors (Eligible US Investors) to access certain options (Eligible Options) listed on HKEx’s markets. Under Class No-action Relief, HKEx participants may engage with Eligible Investors for options related services.
B02A24241D934714AD273561037F6D6D Eligible US Investors
B02A24241D934714AD273561037F6D6D Under Class No-action Relief by the US SEC, only eligible broker-dealers and eligible institutions (EBD/EI) can access options in foreign markets. EBD/EI is any entity that meets the following standards:
- it must be a “qualified institutional buyer” as defined in Rule 144A(a)(1) under the US Securities Act of 1933; or an international organisation excluded from the definition of “US person” in Rule 902(k)(2)(vi) of Regulation S under the Securities Act; and
- it must have had prior actual experience with traded options in the U.S. options markets (and, therefore, would have received the disclosure document for US standardized options called for by Rule 9b-1 under the US Securities Exchange Act of 1934 (“Exchange Act”).
B02A24241D934714AD273561037F6D6D Eligible Options
B02A24241D934714AD273561037F6D6D Hang Seng Index Options
B02A24241D934714AD273561037F6D6D Hang Seng China Enterprises Index Options
B02A24241D934714AD273561037F6D6D Mini- Hang Seng Index Options
B02A24241D934714AD273561037F6D6D Stock Options
B02A24241D934714AD273561037F6D6D HKEx Participants Trading Arrangement with Eligible Investors
B02A24241D934714AD273561037F6D6D Under class no-action relief by US SEC, HKEx participants can offer options to eligible US investors upon complying with the conditions stated in the Class Relief Letter issed by SEC and circulars issued by HKEx. The conditions and procedures are as follows:
- Participants who intend to transact eligible options with one or more eligible US investors are required to notify SEHK/HKFE for record keeping purposes by completing and returning a signed form. (Please refer to the related documents section.)
- Participants are required to obtain, and maintain a record of, representations from eligible US investors before effecting a transaction in eligible options with eligible US investors. (Please refer to the related documents section.)
B02A24241D934714AD273561037F6D6D Related Documents
B02A24241D934714AD273561037F6D6D HKEx Derivatives for US Investors Information Sheet
Stock Exchange of Hong Kong (SEHK)
B02A24241D934714AD273561037F6D6D Circular - US Securities and Exchange Commission Class No-action Relief filed by HKEx (SEHK)
B02A24241D934714AD273561037F6D6D Form -  SEHK participants to notify SEHK of their intention to engage US investors (Appendix 1 of the circular)
B02A24241D934714AD273561037F6D6D Form - Form of representations for eligible US investors to sign and submit to SEHK participants before effecing transaction of options (Appendix 2 of the circular)
Hong Kong Futures Exchange Limited (HKFE)
B02A24241D934714AD273561037F6D6D Circular - US Securities and Exchange Commission Class No-action Relief filed by HKEx (HKFE)
B02A24241D934714AD273561037F6D6D Form - HKFE participants to notify to HKFE of their intention to engage US investors (Appendix 1 of the circular)
B02A24241D934714AD273561037F6D6D Form -  Representations form for eligible US investors to sign and submit to HKFE participants before effecing transaction of options (Appendix 2 of the circular)

Updated 30 Nov 2015

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