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.
Online Derivatives Trading
Below is the list of the Exchange Participants who provide online derivatives trading services for investors.
(Product: Index Futures and Options / Currency Futures / Commodity Futures / Interest Rate Futures)
Disclaimer :
Hong Kong Exchanges and Clearing Ltd endeavors to ensure the accuracy and reliability of the information provided, but does not guarantee its accuracy and reliability and accepts no liability (whether in tort or contract or otherwise) for any loss or damage arising from any inaccurancies or omissions.
List of Market Makers/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).
Below is the list of Liquidity Provider, PMM, CQMM and QRMM:
|
|
Market Makers / Liquidity Providers
|
|
|
BNP |
CFT
|
CTD |
HKF |
HUA
|
IBG
|
IMC
|
ISS
|
LQC |
MPF |
NHT
|
NRA |
OPT
|
SGS |
SPN
|
TBR |
YKR |
|
Hang Seng Index Options
|
*
|
|
P
|
*
|
*
|
*
|
*
|
*
|
*
|
P
|
P
|
√
|
P
|
*
|
*
|
*
|
*
|
|
Mini-Hang Seng Index Options
|
|
|
*
|
*
|
*
|
*
|
*
|
*
|
*
|
*
|
*
|
√
|
*
|
*
|
*
|
|
*
|
|
Hang Seng China Enterprises Index Options
|
*
|
|
P
|
*
|
*
|
*
|
*
|
|
*
|
P
|
P
|
√
|
P
|
*
|
*
|
*
|
*
|
|
Mini-Hang Seng China Enterprises Index Options
|
|
|
*
|
|
*
|
*
|
*
|
|
|
*
|
*
|
|
*
|
*
|
|
|
*
|
|
HSI Dividend Point Index Futures
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HSCEI Dividend Point Index Futures
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CES China 120 Index Futures |
L
|
|
|
|
|
|
|
|
|
L
|
|
|
|
|
|
|
|
|
Sector Index Futures - Hang Seng IT Hardware Index Futures
|
|
|
|
|
|
|
|
|
|
L |
|
|
|
|
|
|
|
| Sector Index Futures - Hang Seng Mainland Banks Index Futures |
|
L
|
|
|
|
L
|
|
|
|
L
|
|
|
|
|
|
|
|
| Sector Index Futures - Hang Seng Mainland Oil & Gas Index Futures |
|
|
|
|
|
|
|
|
|
L
|
|
|
|
|
|
|
|
| Sector Index Futures - Hang Seng Mainland Properties Index Futures |
|
|
|
|
|
|
|
|
|
L
|
|
|
|
|
|
|
|
L - Denotes Liquidity Provider
P - Denotes PMM
* - Denotes CQMM
√ - Denotes QRMM
Market Making/Liquidity providing obligations and Incentives
