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Sector Index Futures

Introduction

Sector index futures are low cost and capital efficient products for investors to capture sector specific trading opportunities and manage their investment risk exposure more precisely.

 

What are Sector Index Futures

 

HKEX’s sector index futures market covers three major business sectors listed on the SEHK, including:

 

  • Hang Seng Mainland Oil & Gas Index (HSMOGI)
  • Hang Seng Mainland Banks Index (HSMBI)
  • Hang Seng Mainland Properties Index (HSMPI)

Key Features of Sector Indices

  • Constituents are selected from pure business segment to reflect their particular business and regulatory environments
  • Constituents are industry leaders limited to the top 10 and subject to liquidity screening
  • Weighting of each constituent is limited to 15 percent to avoid over-concentration

Why Sector Index Futures

  • Responsive to sectorial news and policy changes
  • Diversify firm-specific risks
  • High leverage and capital efficient
  • No stamp duty and other financing costs
  • Short sellable without stock borrowing
  • Long / short strategies made possible: market vs sector, sector vs sector and sector vs single stock futures
Sector Index Futures
Hang Seng Mainland Oil & Gas Index (HSMOGI)
Hang Seng Mainland Banks Index (HSMBI)
Hang Seng Mainland Properties Index (HSMPI)

Updated 08 Aug 2020

Contract Summary

Item Contract Terms
Underlying Index Hang Seng Mainland Oil & Gas Index
Hang Seng Mainland Banks Index
Hang Seng Mainland Properties Index
       
HKATS Code Hang Seng Mainland Oil & Gas Index         MOI
Hang Seng Mainland Banks Index               MBI
Hang Seng Mainland Properties Index         MPI
Contract Multiplier HK$50
Minimum Fluctuation 0.5 Index Point
Contract Months Spot, next calendar month & next two calendar quarter months
Trading Hours 9:15 am - 12:00 noon, 1:00 pm - 4:30 pm
(Expiring contract month closes at 4:00 pm on the Last Trading Day)
Last Trading Day The Business Day immediately preceding the last Business Day of the Contract Month
Final Settlement Price The average value of the sector index taken at (i) five (5) minute intervals from five (5) minutes after the start of the trading session on the Last Trading Day 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 Last Trading Day.
Transaction Costs Exchange Fee                  HK$2.00
Commission Levy            HK$0.54
Commission Rate            Negotiable

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
 AKN BNP CFT  CTC  CTD FLW  GHF  IBG IMC ISS JPM  KGI  LQC MAK  MPF MVN  NHT OPT SGS SQH  YKR YNT 
Hang Seng Index Options *   * P     *   P # P #  P P #   
Weekly Hang Seng Index Options *               #             * #        
Mini-Hang Seng Index Options       *     *     *   * *   *  
Hang Seng China Enterprises Index Options   P *   * P     *    *   * P #  P #  P P #   * P  
Weekly Hang Seng China Enterprises Index Options  *               #             * #        
Mini-Hang Seng China Enterprises Index Options        *       *           * # *   *  
HSI Dividend Point Index Futures   *                                        
HSCEI Dividend Point Index Futures   *                                          
HSI Volatility Index Futures                                  *          
CES China 120 Index Futures          LB                              
MSCI AC Asia ex Japan Net Total Return Index (USD)            LD                                
MSCI Australia Net Total Return (USD) Index Futures           LD                 LN               
MSCI China Free  Net Total Return (USD) Index Futures           LD           LD      LN               
MSCI EM Asia  Net Total Return (USD) Index Futures           LD  LD               LN       LD      
MSCI India Net Total Return (USD) Index Futures            LD           LD      LN              
MSCI Indonesia Net Total Return (USD) Index Futures           LD                 LN               
MSCI Japan Net Total Return (USD) Index Futures           LD                 LN               
MSCI Malaysia Net Total Return (USD) Index Futures            LD                              
MSCI Taiwan (USD) Index Futures     LD      LD           LD      LB              LD
MSCI Taiwan Net Total Return (USD) Index Futures           LD               LN               
MSCI Thailand Net Total Return (USD) Index Futures           LD                                

LD - Denotes Liquidity Provider (T Sessions)
LN - Denotes Liquidity Provider (T+1 Sessions)
LB - Denotes Liquidity Provider (T and T+1 Sessions)
P - Denotes PMM
* - Denotes CQMM (T Session)
# - Denotes CQMM (T and T+1 Sessions)
√ - Denotes QRMM (T Session)
@ - Denotes QRMM (T and T+1 Sessions)

Liquidity Providers 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

 

 

Updated 14 Sep 2020

Updated 08 Aug 2020