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HKEX Launches 1st Tranche of MSCI Futures Contracts

Market Operations
Products
06 Jul 2020

  • 10 new MSCI index futures contracts have launched today on HKEX
  • First tranche of new HKEX / MSCI licensing agreement for 37 futures and options contracts in Hong Kong

 

Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to today (Monday) welcome the launch of the first futures contracts as part of its new index licensing agreement with MSCI Inc., announced on 27 May 2020.  This represents a major step forward in the expansion of HKEX’s derivatives product suite and significantly adds to the breadth and depth of the Hong Kong markets.

The 10 MSCI index futures contracts, which are denominated in US dollars (USD) and track underlying equities in markets such as Australia, Mainland China, India, Indonesia, Japan, Malaysia, Taiwan and Thailand, were successfully listed on HKEX’s derivatives market earlier today.  A total of 10 market makers are providing liquidity in the order book on day one, helping support a deeper pool of liquidity.

On 20 July, HKEX will launch the second tranche of contracts, with seven more USD-denominated futures contracts listing on HKEX.

“Today’s listing marks an exciting new chapter for HKEX and our markets, as we provide even more choice to our customers, and continue to build the breadth, depth and attractiveness of Hong Kong’s financial markets as a global trading and investment hub,” said HKEX Head of Markets Wilfred Yiu.

“Global connectivity is a central premise of our strategy and our business and these derivatives contracts will greatly expand the coverage of underlying assets beyond Hong Kong and Mainland China, to the rest of Asia and beyond. This will bring enhanced liquidity to our markets and greatly complement our existing product suite. We look forward to the rollout of further contracts and continuing to develop our ecosystem to make our markets even more vibrant, connected and attractive to our customers around the world,” said Mr Yiu.

In May 2020, HKEX signed a 10-year licensing agreement with MSCI to license a suite of MSCI indexes in Asia and Emerging Markets for the launch of 37 futures and options contracts in Hong Kong.  The agreement expands the existing partnership between the two companies, and further anchors HKEX and MSCI’s commitment to a long-term product development and innovation programme in the region.

Following the introduction of the first batch of contracts in July, HKEX plans to launch the remainder of the contracts later in the year, subject to regulatory approvals and market conditions.

With the launch of the new derivatives contracts, HKEX has introduced incentive programmes for liquidity providers, proprietary traders and block trade participants to support the liquidity development of the contracts.  In addition, the Commission Levy charged by the Securities and Futures Commission will be exempted for the first six months of trading.

Please see this market circular and the designated page on HKEX's website for more detailed product specifications and planned launch dates of the MSCI derivatives contracts.

Please see below the list of MSCI index futures contracts launching in July:

6 July 2020

1.       MSCI Australia Net Total Return (USD) Index Futures

2.       MSCI China Free Net Total Return (USD) Index Futures

3.       MSCI India Net Total Return (USD) Index Futures

4.       MSCI Indonesia Net Total Return (USD) Index Futures

5.       MSCI Japan Net Total Return (USD) Index Futures

6.       MSCI Malaysia Net Total Return (USD) Index Futures

7.       MSCI Taiwan (USD) Index Futures

8.       MSCI Taiwan Net Total Return (USD) Index Futures

9.       MSCI Thailand Net Total Return (USD) Index Futures

10.     MSCI EM Asia Net Total Return (USD) Index Futures

20 July 2020

11.     MSCI Hong Kong Net Total Return (USD) Index Futures

12.     MSCI Indonesia (USD) Index Futures

13.     MSCI Philippines Net Total Return (USD) Index Futures

14.     MSCI Singapore Net Total Return (USD) Index Futures1

15.     MSCI Vietnam Net Total Return (USD) Index Futures

16.     MSCI Emerging Markets Net Total Return (USD) Index Futures

17.     MSCI Emerging Markets (USD) Index Futures

 

Note:

1. Subject to final comment from the Monetary Authority of Singapore

 

About HKEX

Hong Kong Exchanges and Clearing Limited (HKEX) is one of the world’s major exchange groups, and operates a range of equity, commodity, fixed income and currency markets.  HKEX is the world’s leading IPO market and as Hong Kong’s only securities and derivatives exchange and sole operator of its clearing houses, it is uniquely placed to offer regional and international investors access to Asia’s most vibrant markets.

HKEX is also the global leader in metals trading, through its wholly owned subsidiaries, The London Metal Exchange (LME) and LME Clear Limited.  This commodity franchise was further enhanced with the launch of Qianhai Mercantile Exchange (QME), in China, in 2018.

HKEX launched the pioneering Shanghai-Hong Kong Stock Connect programme in 2014, further expanded with the launch of Shenzhen Connect in 2016, and the launch of Bond Connect in 2017.

www.hkexgroup.com

 

Ends

 

Updated 06 Jul 2020