Hong Kong Exchanges and Clearing Limited (HKEx) will offer additional expiry months in selected stock option classes starting in the second quarter of this year.
Under the scheme, a third calendar quarter expiry month will be introduced for trading in the following five stock option classes from 2 April:
- Cheung Kong
- China Life Insurance
- China Mobile
- HSBC
- Hutchison Whampoa
As a result, the expiry months available for trading in the five stock option classes from 2 April will be April, May, June, September, December 2007 and March 2008.
“We are monitoring the market for signs of demand for the third calendar quarter expiry month or other longer-dated expiry months in the other option classes and may consider introducing additional expiry months in more selected stock option classes to further expand the choices available to investors,” said HKEx Chief Operating Officer Gerald Greiner.
HKEx will introduce revised market making obligations in its stock options and stock futures markets on 2 April in a separate initiative (the revised obligations are attached below).
“These revisions underline our commitment to quality market making services,” said Mr Greiner.
Revisions in Market Making Obligations in Stock Options