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HKEX Finalises Operational Model for Derivatives Holiday Trading

Market Operations
06 Jan 2022

  • Strong market support for operational model for Derivatives Holiday Trading
  • Holiday trading planned for April 2022 launch to cover Easter holidays, subject to market readiness and regulatory approval
  • HKEX’s MSCI futures and options contracts will be the first batch of holiday trading products


Hong Kong Exchanges and Clearing Limited (HKEX) is today (Thursday) pleased to announce it has finalised the operational model for non-Hong Kong Dollar (HKD) denominated futures and options trading and clearing services on Hong Kong public holidays (Derivatives Holiday Trading).

HKEX received 55 responses from a wide range of market participants for its consultation paper, with strong support on the launch of Derivatives Holiday Trading and its proposed operational model. HKEX will proceed with launching Derivatives Holiday Trading with the operational arrangements as proposed in April 2022 to cover the Easter holidays, subject to market readiness and regulatory approval. All MSCI futures and options will be included as the first batch of Holiday Trading Products.

HKEX President and Chief Operating Officer Calvin Tai said: “The introduction of Derivatives Holiday Trading is a major development for Hong Kong as the region’s pre-eminent international risk management and derivatives trading centre. This is part of HKEX’s ongoing commitment to enhancing its market microstructure and derivatives product ecosystem, and we believe it will be warmly welcomed by customers around the world.”

“We would like to thank all stakeholders for their feedback to the Derivatives Holiday Trading consultation paper, and we look forward to launching this major market enhancement later this year,” Mr Tai added.  

As part of the consultation conclusions, HKEX will make minor adjustments on the liquidity management arrangement on days when both Hong Kong and the United States have mutual holidays, accounting for feedback received during the consultation.

Derivatives Holiday Trading will allow international investors to trade non-HKD denominated futures and options products on Hong Kong public holidays, when the markets of their underlying securities may be open. HKEX plans to add non-HKD denominated futures and options to Derivatives Holiday Trading in batches, with the first batch being all MSCI futures and options contracts.

HKEX plans to hold a market readiness test in late February 2022 ahead of the launch of Derivatives Holiday Trading in April.

Consultation Conclusions and respondents’ feedback are available on the HKEX website. 

 

 

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 Jan 2022