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Mini-Hang Seng China Enterprises Index Options

Mini-Hang Seng China Enterprises Index Futures and Options

The trading and hedging needs relating to H-shares from retail investors are growing continously.  As volatility and index level increase, the high profit and loss swing becomes a hurdle for retail investors’ participation.  A mini-Hang Seng China Enterprises Index futures and options would meet the needs of customers who have a smaller risk capital.

The underlying index of Mini-Hang Seng China Enterprises Index futures and options is the Hang Seng China Enterprises Index (HSCEI), the same as the standard HSCEI futures and options contract.  The HSCEI is a market capitalisation-weighted stock index which is compiled and calculated by Hang Seng Indexes Company Limited.  

Advantages

Tailor-made for retail investors
The Mini-HSCEI Index futures and options contracts inherit the advantages of the larger sized HSCEI Index futures and options contracts but are tailored for individuals with smaller risk capital. The smaller contract size allows experienced and novice investors alike to participate in the performance of the H-shares market in a graduated scale.

Transaction costs
 No stamp duty is required for trading futures and options product.

Margin offset
The client and clearing house margin levels for Mini-HSCEI futures and options contract will be set at one-fifth of the respective margins for the HSCEI futures and options contract.  Margin offset will be applicable to the product group containing HSCEI contracts in net margined accounts, with delta/spread between the Mini-HSCEI Index and HSCEI contracts set at a ratio of 5 to 1.

Fungibility
The Mini-HSCEI futures and options contract and the HSCEI futures and options contract are fungible in that opposite positions in these two contracts can be offset at the ratio of one HSCEI futures and options contract against five Mini-HSCEI futures and options contracts.  Positions in these two exchange contracts will be netted automatically (in the case of House and Market Making Accounts) or may be closed out in accordance with the Clearing House Rules.


Updated 24 Oct 2023


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Contract Summary

Mini-Hang Seng China Enterprises Index Options

 



Item

Contract Terms
Underlying Index Hang Seng China Enterprises Index (HSCEI)
HKATS Code MCH
Contract Multiplier HK$10 per index point
Minimum Fluctuation One index point
Contract Months Spot month, next calendar month, & next two calendar quarter months
Trading Hours 9:15 am - 12:00 noon, 1:00 pm - 4:30 pm & 5:15 pm -3:00 am (effective on 3 Dec 2018)
(Expiring contract month closes at 4:00 pm on the Last Trading Day)
           
Exercise Style European
 Strike Prices  
 Index Points  Strike Interval
 ≥ 20,000  200
 ≥ 5,000 and < 20,000  100
 < 5,000  50

Expiry  Day The second last Trading Day of the Contract Month
Official Settlement Price The average of quotations of Hang Seng China Enterprises Index taken at (i) five (5) minute intervals from five (5) minutes after the start of, and up to five (5) minutes before the end of, the Continuous Trading Session of SEHK; and (ii) the close of trading on SEHK on the Expiry Day.
Transaction Costs Exchange Fee              HK$1.00
Commission Levy       HK$0.54
Commission Rate        Negotiable

Margin Table

Trading Fees and Commission

Exchange Fee
HK$1.00 per contract per side
Commission Levy
HK$0.54 per contract per side
Investor Compensation Levy*
HK$0.00 per contract per side
Total
HK$1.54 per contract per side
Commission
Negotiable
* The amount indicated above is subject to change from time to time.

List of Market Makers or Liquidity Providers

Equity Index Products

There are liquidity provider and 3 types of market makers in the equity index products market:

- Primary Market Maker (PMM); and

- Market maker providing continuous quotes (CQMM); and

- Market maker responding to quote request (QRMM). 

For the details of the obligations and incentives of liquidity providers and market makers, please refer webpage.

Below is the list of Short Code for EP of Liquidity Provider, PMM, CQMM and QRMM:

 
Market Makers / Liquidity Providers
BNP CFT CTD FLW GHF IBG IMC KGI MPF NHT OPT SGS SQH YKR
Hang Seng China Enterprises Index Futures Options PMD PMD PMD PMD PMD CMD
Hang Seng Index Futures Options PMD PMD PMD PMD PMD CMD
Hang Seng Index Options CMD PMD CMD SMW SMW PMD SMW CMW CMD PMD
Hang Seng TECH Index Futures Options CMD PMD PMD PMD CMD
Hang Seng Tech Index Options CMD CMD PMD PMD PMD CMW
HHI Options CMD PMD CMD SMW PMW PMD SMW CMW CMD PMD
HSCEI Dividend Point Index Futures CMD
HSI Dividend Point Index Futures CMD
MCH Options CMD CMD CMW CMD CMD CMW CMD
MHI Options CMD CMD CMW CMD CMD CMW CMW CMD
MSCI AC Asia ex Japan Net Total Return Index Futures CLD CLN
MSCI China (USD) Index Futures CLD
MSCI China A 50 Connect (USD) Index Futures CLW CLD CLW CLD CLW
MSCI China Net Total Return (USD) Index Futures CLD CLN
MSCI EM Asia Net Total Return (USD) Index Futures CLD CLN
MSCI Emerging Markets Net Total Return (USD) Index Futures CLD CLN
MSCI Hong Kong Net Total Return (USD) Index Futures CLD
MSCI India (USD) Index Futures CLW CLN CLW CLD CLW CLD
MSCI India Net Total Return (USD) Index Futures CLD CLN
MSCI Indonesia Net Total Return (USD) Index Futures CLD
MSCI Japan Net Total Return (USD) Index Futures CLD CLN
MSCI Malaysia Net Total Return (USD) Index Futures CLD
MSCI Philippines Net Total Return (USD) Index Futures CLD
MSCI Singapore Free (SGD) Index Futures CLD
MSCI Taiwan (USD) Index Futures CLW CLW CLD CLD
MSCI Taiwan 25/50 (USD) Index Futures CLD
MSCI Taiwan Net Total Return (USD) Index Futures CLD CLN
MSCI Thailand Net Total Return (USD) Index Futures CLD
Weekly HHI Options CMD CMW CMD CMD CMW CMW CMD
Weekly HSI Options CMD CMD CMW CMW CMD CMW CMW CMD

C – Denotes providing continuous quotes
Q – Denotes responding to quote requests
P – Denotes Primary Market Maker providing continuous quotes and responding to quote requests
S – Denotes combination of C, Q and P

M – Denotes Market Maker
L – Denotes Liquidity Provider
B – Denotes both Market Maker and Liquidity Provider

D – Denotes T Session
N – Denotes T+1 Session
W – Denotes Both T and T+1 Sessions

Market Making/Liquidity providing obligations and Incentives

For details of the Market Making/Liquidity Providing Obligations and Incentives of Equity Index Products, please refer our webpage below:

https://www.hkex.com.hk/Products/Listed-Derivatives/Market-Maker-Program/Market-Maker-Obligations-and-Incentives?sc_lang=en