Revised Market-maker Obligations in Stock Options Market to Take Effect on 3 July
Market Operations
27 Apr 2006
Hong Kong Exchanges and Clearing Limited (HKEx) announced today (Thursday) that revised Market-maker obligations in its stock options market would take effect on 3 July this year.
Under the revised obligations:
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The minimum holding time for quotes provided in response to quote requests will be 20 seconds (the current minimum is 10 seconds), unless there is a change in the nominal price of the underlying security during that period; and
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The minimum number of option series assigned to a Market Maker providing continuous quotes will be 18 series per option class (the current minimum is 12 series per option class).
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“Market participants will enjoy better market-making services as a result of the revisions,” said HKEx Chief Operating Officer Patrick Conroy.
“Increasing the option series with continuous quotes will further increase price transparency, and we expect the longer holding time for quotes will make it easier for market participants to execute their orders,” Mr Conroy added.