HKEX Plans to Extend Trading and Clearing of MSCI Derivatives to Cover Hong Kong Holidays

Market Operations
23 Oct 2020

Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce plans to extend trading and clearing of all MSCI derivatives contracts to cover Hong Kong public holidays. This represents HKEX’s latest market enhancement to support the global trading community in managing their risks and optimising their portfolios. Hang Seng Index and Hang Seng China Enterprises Index derivatives will not be under the scope of holiday trading at this stage.

HKEX Head of Markets Wilfred Yiu said: “Our plans to introduce holiday trading for the MSCI products will provide even more choice for our customers, as we continue to build the breadth, depth and attractiveness of our market ecosystem to make Hong Kong Asia’s derivatives hub.”

HKEX’s wholly-owned subsidiary, Hong Kong Futures Exchange Limited (HKFE), is discussing the holiday trading arrangements with the Securities and Futures Commission and is validating its internal system readiness. Implementation of holiday trading will be subject to further discussion with market participants on their readiness and regulatory approval.

Finalised arrangements, as well as the launch date of holiday trading, will be announced in due course.

Since July, HKEX has launched 38 MSCI index futures contracts, completing the listing of all MSCI futures contracts in the current phase. HKEX plans to launch an MSCI Taiwan options contract later this year, subject to market conditions.

Open interest in MSCI contracts has grown significantly in September and October, reflecting increasing demand for the MSCI derivatives products on HKEX. As of 22 October, total open interest of MSCI derivatives products in Hong Kong totaled 78,669, up from 44,066 at the end of September, and 3,967 at the end of August.

In May 2020, HKEX signed a major agreement with MSCI to license a suite of MSCI indexes in Asia and Emerging Markets for the launch of derivatives contracts in Hong Kong.

In addition, HKEX will consider adding its foreign exchange and commodities derivatives products to holiday trading as market conditions warrant.

Participation in holiday trading is not mandatory to Exchange and Clearing Participants. However, to facilitate planning and preparation for holiday trading, HKEX encourages interested participants to take note of the related arrangements and to start evaluating their system and operational readiness.

Please refer to the HKFE circular on HKEX's website for more details of the planned holiday trading.


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.





Updated 23 Oct 2020