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

Mini-Hang Seng China Enterprises Index Options

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	DAI	FLW	GHF	IBG	IMC	JST	KGI	MPF	NHA	NHT	OPT	ORN	SGS	SQH	YKR
Hang Seng China Enterprises Index Futures Options			PMD					PMD			PMD		PMD	PMD			CMD	PMD
Hang Seng Index Futures Options			PMD					PMD			PMD		PMD	PMD			CMD
Hang Seng Index Options	CMD		PMD				CMD	SMW			SMD		PMD	SMW			CMD	PMD
Hang Seng TECH Index Futures Options								PMD			PMD		PMD	PMD			CMD
Hang Seng Tech Index Options							CMD	PMD			PMD		PMD	PMD			CMD
HHI Options	CMD		PMD				CMD	SMW			SMD		PMD	SMW			CMD
HSCEI Dividend Point Index Futures	CMD
HSI Dividend Point Index Futures	CMD
MCH Options			CMD				CMD	CMW			CMD		CMD	CMW
MHI Options			CMD				CMD	CMW			CMD		CMD	CMW				CMD
MSCI AC Asia ex Japan Net Total Return Index Futures					CLD						CLW
MSCI China A 50 Connect (USD) Index Futures		CLW		CLN	CLD	CLD				CLW	CLD		CLD		CLD	CLW
MSCI China Net Total Return (USD) Index Futures		CLW							CLD	CLD
MSCI EM Asia Net Total Return (USD) Index Futures					CLD				CLD		CLW
MSCI Emerging Markets Net Total Return (USD) Index Futures									CLD
MSCI Hong Kong Net Total Return (USD) Index Futures					CLD				CLD		CLD
MSCI India (USD) Index Futures		CLW
MSCI India Net Total Return (USD) Index Futures					CLD				CLD		CLW
MSCI Indonesia Net Total Return (USD) Index Futures		CLD
MSCI Japan Net Total Return (USD) Index Futures					CLD						CLD
MSCI Malaysia Net Total Return (USD) Index Futures					CLD						CLD
MSCI Philippines Net Total Return (USD) Index Futures		CLD
MSCI Taiwan (USD) Index Futures		CLW				CLW									CLN	CLD
MSCI Taiwan 25/50 (USD) Index Futures					CLD
MSCI Taiwan Net Total Return (USD) Index Futures		CLD			CLD						CLW
MSCI Thailand Net Total Return (USD) Index Futures		CLD							CLD
Weekly HHI Options			CMD					CMW			CMD		CMD	CMW			CMD
Weekly HSI Options	CMD		CMD					CMW			CMD		CMD	CMW			CMD	CMD
Weekly HTI Options								CLD			CLD		CLD	CLD			CLD

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