HKFE to Revise HIBOR Futures Contracts
Market Operations
25 Mar 2002
Hong Kong Futures Exchange Limited (HKFE), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), will increase the size of its HIBOR (Hong Kong Interbank Offered Rate) Futures Contracts to five times their current size before the start of trading on 27 May 2002. At the same time, the Exchange and Settlement Fees for HIBOR Futures Contracts will be increased to two-and-a-half times their current level, resulting in an effective reduction of 50 per cent.
The contract sizes and fees are as follows:
| Futures Contract |
Current size |
Size from
27 May 02 |
Current Exchange and
Cash Settlement Fees
(per contract per side) |
Exchange and
Cash Settlement Fees
from 27 May 02
(per contract per side) |
|
One-month HIBOR |
$3 million |
$15 million |
Each = $2 |
Each = $5 |
|
Three-month HIBOR |
$1 million |
$5 million |
Each = $2 |
Each = $5 |
Conversion Arrangements
Open positions in existing contracts will be converted to open positions in the revised contracts on a 5-to-1 basis after the close of business on 24 May 2002.
Open positions not in multiples of five contracts will be closed out at the Closing Quotation after the close of business on 24 May 2002.
To pave the way for a smooth conversion process, Exchange Participants have been asked to encourage their clients to adjust their open positions to multiples of five contracts before 24 May 2002.
The revisions, which are based on market participants' comments, will reduce trading costs and strengthen the competitiveness of HKEx's markets.