The Hong Kong Futures Exchange Limited (HKFE), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), has received no-action relief from the US Commodity Futures Trading Commission (CFTC) which enables HKFE Exchange Participants (EPs) to offer and sell the exchange’s mini futures contracts based on the Hang Seng Index (HSI) and the Hang Seng China Enterprises Index (HSCEI) in the US.
The contracts, known as Mini HSI futures and Mini H-shares Index futures, can be made available for trading through HKATS* terminals located in the US in accordance with the terms and conditions of the no-action letter issued by the CFTC in June 2000. Interested parties may refer to the website of the CFTC (www.cftc.gov) for details.
HKEx strives to make its products as accessible to as many investors as possible, and believes the markets for Mini futures contracts on the HSI and HSCEI benefit from enhanced liquidity with the participation of investors from overseas. Similar no-action relief was granted to futures contracts based on the HSI and HSCEI in June 1994 and October 2006 respectively.
The US is a major contributor to overseas investor trading in HKEx’s derivatives market, accounting for 26 per cent, according to the latest Derivatives Market Transaction Survey conducted by HKEx (US investors comprise Americans and American firms located in the US or outside the country; for complete survey results, please see: http://www.hkex.com.hk/eng/stat/research/dmts/documents/dmts08.pdf).
* All HKEx derivatives market trading is done through HKATS.
Notes to Editors:
About HSI and Mini HSI Futures
The HSI is a broad-based, modified-free-float-adjusted market-capitalisation-weighted index designed to reflect the performance of the overall Hong Kong stock market. The HSI is compiled and managed by Hang Seng Indexes Company Limited. As of 30 January 2009, there were 42 stocks in the HSI with a total market capitalisation of approximately US$850 billion.
Mini HSI futures commenced trading on the HKFE on 9 October 2000. For contract specifications, please see: http://www.hkex.com.hk/eng/prod/drprod/mhsifo/minif.htm.
Average daily trading volume grew from 3,188 contracts in 2001, the first full year of trading, to 32,761 last year, when Mini HSI futures were one of the five most actively traded products in HKEx’s derivatives market (for details, please see:
http://www.hkex.com.hk/eng/stat/dmstat/marksum/YearlyStatistics_F_MHI.htm).
About HSCEI and Mini H-shares Index futures
The HSCEI is a broad-based, modified-free-float-market-capitalisation-weighted index composed of all H-share common stocks that are listed on The Stock Exchange of Hong Kong Limited, a wholly-owned subsidiary of HKEx, and included in the Hang Seng Composite Index, which is compiled and managed by Hang Seng Indexes Company Limited. As of 30 January 2009, there were 43 stocks in the HSCEI with a total market capitalisation of approximately US$304 billion.
Mini H-shares Index futures commenced trading on the HKFE on 31 March 2008. For contract specifications, please see: http://www.hkex.com.hk/eng/prod/drprod/mchfut/mchfut.htm. Last year, average daily trading volume rose from 1,266 contracts in April, the first full month of trading, to 2,822 contracts in December (for details, please see:
http://www.hkex.com.hk/eng/stat/dmstat/marksum/MonthlyStatistics_F_MCH.htm).