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Market Making/Liquidity Providing Obligations and Incentives

Introduction

HKEX’s derivatives market has both Market Maker (MM) Program and / or Liquidity Provider (LP) Program for different derivatives products.  The MM obligations and MM incentives under the MM Program for futures contracts and index options contracts are set out in the HKFE Rules.  The MM obligations and MM incentives under the MM Program for stock options contracts are set out in the Options Trading Rules of the Stock Exchange.  LP Program is a commercial arrangement for the Exchange to appoint LPs to provide liquidity for new products, which require more flexibility in terms of LP obligations and LP incentives and are not stipulated in the exchange rules and procedures. 

The derivatives products with MM Program and / or LP Program are as follows:

Product Type Contract MM Program LP Program
Futures Contracts

Stock Index Futures

HSI Volatility Index Futures
HSI Dividend Point Index Futures
HSCEI Dividend Point Index Futures
Hang Seng Mainland Oil & Gas Index Futures 
Hang Seng Mainland Banks Index Futures
Hang Seng Mainland Properties Index Futures
Hang Seng Index (Gross Total Return) Index Futures
Hang Seng Index (Net Total Return) Index Futures
Hang Seng China Enterprises Index (Gross Total Return Index) Futures
Hang Seng China Enterprises Index (Net Total Return Index) Futures

Hang Seng TECH Index Futures and Options
MSCI Asia ex Japan Index Futures
MSCI Taiwan (USD) Index Futures
MSCI Taiwan (USD) Index Options
MSCI China Free (USD) Index Futures
MSCI China Free (USD) Index Futures Calendar Spread
MSCI  China Free (USD) Index Options
MSCI Taiwan Net Total Return (USD) Index Futures
MSCI Japan Net Total Return (USD) Index Futures
MSCI India Net Total Return (USD) Index Futures
MSCI China Free Net Total Return (USD) Index Futures
MSCI Indonesia Net Total Return (USD) Index Futures
MSCI Australia Net Total Return (USD) Index Futures
MSCI Thailand Net Total Return (USD) Index Futures
MSCI Malaysia Net Total Return (USD) Index Futures
MSCI EM Asia Net Total Return (USD) Index Futures
MSCI Singapore Net Total Return (USD) Index Futures
MSCI Vietnam Net Total Return (USD) Index Futures
MSCI Hong Kong Net Total Return (USD) Index Futures
MSCI Philippines Net Total Return (USD) Index Futures
MSCI Indonesia (USD) Index Futures
MSCI Emerging Markets Net Total Return (USD) Index Futures
MSCI Emerging Markets (USD) Index Futures
MSCI India (USD) Index Futures
MSCI China Free (USD) Index Futures
MSCI Thailand (USD) Index Futures
MSCI Malaysia (USD) Index Futures
MSCI Philippines (USD) Index Futures
MSCI Vietnam (USD) Index Futures
MSCI Taiwan 25/50 (USD) Index Futures
MSCI Taiwan 25/50 Net Total Return (USD) Index Futures
MSCI Singapore Free (SGD) Index Futures
MSCI Japan (JPY) Index Futures
MSCI Japan Net Total Return (JPY) Index Futures
MSCI Taiwan (USD) Index Futures Calendar Spread
MSCI Taiwan 25/50 (USD) Index Futures Calendar Spread
Block Trade Participant Program

Stock Futures Single Stock Futures Single Stock Futures
Currency Futures USD/CNH Futures
EUR/CNH Futures
JPY/CNH Futures
AUD/CNH Futures
CNH/USD Futures

USD/CNH Futures
EUR/CNH Futures
JPY/CNH Futures
AUD/CNH Futures
CNH/USD Futures
INR/USD Futures
INR/CNH Futures

Interest Rate Futures 1-month HIBOR Futures
3-month HIBOR Futures
N/A
Commodity Futures N/A

USD London Aluminum Mini Futures
USD London  Zinc Mini  Futures
USD London Copper Mini Futures

USD Gold Futures
CNH Gold Futures  


USD Silver Futures
CNH Silver Futures 

Iron Ore Futures - Monthly Contract        

Option Contracts

Stock Index Options Hang Seng Index (HSI) Options
Weekly Hang Seng Index (WHSI) Options
Mini-Hang Seng Index (Mini-HSI)Options
Hang Seng China Enterprises Index (HSCEI) Options
Weekly Hang Seng China Enterprises Index (WHSCEI) Options
Mini-Hang Seng China Enterprises Index (Mini-HSCEI)Options
N/A
Stock Options Single Stock Options N/A
Currency Options N/A USD/CNH Options

 

Quota for Liquidity Providers on HKFE products

Contracts

Tier

Session

Total Quota

Remaining Quota

(last update on 16 Apr 2021 )

Basket of 28 MSCI Index Futures

1

T & T+1

1

0

MSCI Taiwan (USD) Index Futures

2

T

7

3

4

T & T+1

2

2

MSCI Taiwan (USD) Index Futures - Calendar Spread

2

T

4

1

MSCI Taiwan (USD) Index Options

5

T

4

3

MSCI Taiwan 25/50 (USD) Index Futures

2

T

4

1

3

T

2

0

MSCI Taiwan 25/50 (USD) Index Futures - Calendar Spread

2

T

3

0

MSCI China Free (USD) Index Futures

5

T

3

0

MSCI China Free (USD) Index Futures - Calendar Spread

5

T

2

0

MSCI China Free (USD) Index Options

5

T

3

0

MSCI China Free Net Total Return (USD) Index Futures

2

T

2

0

MSCI AC Asia ex Japan Net Total Return Index (USD) Futures

2

T & T+1

1

0

MSCI EM Asia Net Total Return (USD) Index Futures

2

T

2

0

MSCI India Net Total Return (USD) Index Futures

2

T

2

0

MSCI Singapore Free (SGD) Index Futures

2

T

3

0

HS TECH Index Futures

1

T

4

0

HS TECH Index Options

2

T

6

0

Eligibility

Product Type MM LP
HKFE Futures Contracts and Option Contracts
  •    HKFE Exchange Participant (EP), or
  •    Corporate entity as client of EP must  has an association to the EP and also must  meet at least one of the requirements:
    i) be a regulated entity by the Securities and Futures Commission (SFC) to deal in securities or futures contracts, except as an introducing agent ; or licensed for similar activity by an overseas authority having a Memorandum of Understanding with SFC;
    Ii)   be a licensed bank;
    Iii)  have a credit rating of A- or above (S&P) or A3 or above (Moody’s); or
    iv)  have a minimum paid-up capital of HK$50 mil. and minimum shareholder funds of HK$100 mil.
HKFE Exchange Participant or the client of the Exchange Participant
SEHK Stock Options Option Trading Exchange Participant
(Affiliates of Option Trading Exchange Participant can be stock options Market Maker via the Option Trading Exchange Participant as its agent)
N/A

For the List of Market Makers/ Liquidity Provider

Please refer the hyperlink below:

https://www.hkex.com.hk/Products/Listed-Derivatives/Market-Maker-Program/List-of-Market-Makers_Liquidity-Providers?sc_lang=en


LP and market making obligations and incentives

The following tables summarise the market making obligations and incentives in futures and options contracts:

Stock Index Futures (Except Sector Index Futures, Dividend Point Index Futures ,Volatility Index Futures and HSI and HSCEI Total Return Index Futures, please refer the tables below for the requirements)

Market Making
Obligation
Provision of
Continuous Quotes (CQ)
Response to
Quote Requests (QR)
Assigned Contract
Not less than 2 contract months
[i.e. Spot month and the next calendar month] 
All contract months
Trading Requirement Provision of CQ for not less than
70% of the trading hours in each calendar month
 
Response to not less than 70%
of the QR in each calendar month
Maximum Time Limit for Responding to QR
 
N/A Response to a QR within 20 seconds of the QR
Minimum Display Time Not fewer than 10 seconds, unless a change in the level of the underlying index occurs during the 10 seconds display period, in which case, market makers may change their quotes
 
Maximum Bid/Offer Spread Not greater than 15 minimum fluctuations

Minimum Quote Size
 
  Not fewer than 5 contracts


Sector Index Futures 

Market Maker Obligations

Market Making
Obligation
Provision of
Continuous Quotes (CQ)
Response to
Quote Requests (QR)
Assigned Contract Not less than 2 contract months
[i.e. Spot month and the next calendar month] 
All contract months
Trading Requirement Provision of CQ for not less than
70% of the trading hours in each calendar month
 
Response to not less than 70%
of the QR in each calendar month
Maximum Time Limit for Responding to QR
 
N/A Response to a QR within 20 seconds of the QR
Minimum Display Time Not fewer than 10 seconds, unless a change in the level of the underlying index occurs during the 10 seconds display period, in which case, market makers may change their quotes
 
Maximum Bid/Offer Spread   
Hang Seng Mainland Oil & Gas Index Futures 4 Index points or 0.2% of bid price, whichever is higher
Hang Seng Mainland Banks Index Futures 6 Index points or 0.2% of bid price, whichever is higher
Hang Seng Mainland Properties Index Futures 7 Index points or 0.2% of bid price, whichever is higher
Minimum Quote Size
 
  Not fewer than 5 contracts
  

Dividend Index Point Futures  

Market Making
Obligation
Provision of
Continuous Quotes (CQ)
Response to
Quote Requests (QR)
Assigned Contract All five yearly contracts  
Trading Requirement Provision of CQ for not less than 70% of the trading hours in each calendar month Response to not less than 70% of the QR in each calendar month
Maximum Time Limit for Responding to QR N/A Response to a QR within 20 seconds of the QR
Minimum Display Time Not fewer than 10 seconds, unless a change in the level of the underlying index occurs during the 10 seconds display period, in which case, market makers may change their quotes
Maximum Bid/Offer Spread 30.00 points or 10% of bid price, whichever is higher
Minimum Quote Size 50 contracts

 
HSI Volatility Index Futures

Market Making
Obligation
Provision of
Continuous Quotes (CQ)
Response to
Quote Requests (QR)
Assigned Contract All contract months
(Spot month and the next two calendar months)
 
Trading Requirement Provision of CQ for not less than
70% of the trading hours in each calendar month
 
Response to not less than 70%
of the QR in each calendar month
Maximum Time Limit for Responding to QR
 
N/A Response to a QR within 20 seconds of the QR
Minimum Display Time Not fewer than 10 seconds, unless a change in the level of the underlying index occurs during the 10 seconds display period, in which case, market makers may change their quotes
 
Maximum Bid/Offer Spread
 
0.50 points or 5% of bid price,  whichever is higher 
Minimum Quote Size
 
Not fewer than 5 contracts


Hang Seng Index and Hang Seng China Enterprises Index Total Return Index Futures


Obligation
Provision of
Continuous Quotes (CQ)
Response to
Quote Requests (QR)
Assigned Contract Not less than 2 contract months
[i.e. Spot month and the next calendar month]
All contract months
Trading Requirement Provision of CQ for not less than
70% of the trading hours in each calendar month
Response to not less than 70%
of the QR in each calendar month
Maximum Time Limit for Responding to QR
N/A Response to a QR within 20 seconds of the QR
Minimum Display Time Not fewer than 10 seconds, unless a change in the level of the underlying index occurs during the 10 seconds display period, in which case, market makers may change their quotes
Maximum Bid/Offer Spread
Hang Seng Index (Gross Total Return Index) Futures Contracts 600.00 Index points or 1% of bid price, whichever is higher
Hang Seng Index (Net Total Return Index) Futures Contracts 600.00 Index points or 1% of bid price, whichever is higher
Hang Seng China Enterprises Index (Gross Total Return Index) Futures Contracts 200.00 Index points or 1% of bid price, whichever is higher
Hang Seng China Enterprises Index (Net Total Return Index) Futures Contracts 200.00 Index points or 1% of bid price, whichever is higher 
Minimum Quote Size
1 contract


Stock Index Options (Excluding Weekly Index Options)

There are three types of market makers in HKEX’s stock index options market:
- Primary Market Maker (PMM);
- Market maker providing continuous quotes (CQMM); and
- Market maker responding to quote request (QRMM). 

For details of PMM Program, please refer to the hyperlink below:

http://www.hkex.com.hk/eng/market/dv_tradfinfo/pmm.htm

Below is a summary of the CQMM and QRMM program (T Session):
Market Making
Obligation
Provision of
Continuous Quotes (CQ)
Response to
Quote Requests (QR)
Assigned Series Not less than 50 option series* (except that, not less than 25 option series for Mini-Hang Seng Index Options and Mini-HSCEI Index Options**) All QR issued (except for QR in long dated index options)
Trading Requirement Provision of CQ not less than 70%
of the trading hours in each calendar month
 
Response to not less than 70%
of the QR in each calendar month
Maximum Time Limit for
Responding to QR
 
N/A Response to a QR within 20
seconds of the QR
Minimum Display Time Not less than 20 seconds, unless a change in the price level of the Spot Month Futures Contracts of the underlying index occurs during the 20 seconds display period, in which case, market makers may change their quotes
 
Maximum bid/offer spread
(Except for Long Dated Index Options)
For HSI Options and HSCEI  Options: 
Month Price Max. bid/offer spread
1st, 2nd, 3rd, 4th calendar  1-750 points Max (30 points, 10% of bid)
> 750 points 75 points
1st , 2nd quarter  1-750 points Max (40 points, 20% of bid)
> 750 points 150 points
3rd quarter  1-750 points Max (50 points, 25% of bid)
> 750 points 200 points
 
For Mini-HSI Options and Mini-HSCEI Options: 
Month Price Max. bid/offer spread
1st, 2nd calendar  1-750 points Max (30 points, 10% of bid)
> 750 points 75 points
1st quarter  1-750 points Max (40 points, 20% of bid)
> 750 points 150 points
2nd quarter  1-750 points Max (40 points, 20% of bid)
> 750 points 150 points
Minimum Quote Size
 
For HSI Options and HSCEI Options 
Month Min. Quote Size
1st, 2nd, 3rd, 4th calendar 5 contracts
1st , 2nd, 3rd quarter 3 contracts
For Mini-HSI Options and Mini-HSCEI Options 
Month Min. Quote Size
1st , 2nd calendar 5 contracts
1st , 2nd quarter 3 contracts

* For HSI Options and HSCEI Options, CQMM should provide bid/offer quotes in at least 50 option series chosen from the following selection pool:  

Contract Month Option Series Series For Selection
Call Put
Spot month  Out-of-the-Money 15 15
 In-the-Money 2 2
2nd Calendar Month  Out-of-the-Money 15 15
 In-the-Money 2 2
3rd Calendar Month  Out-of-the-Money 15 15
 In-the-Money 2 2
4th Calendar Month  Out-of-the-Money 10 10
 In-the-Money 2 2
1st Quarter Month  Out-of-the-Money 10 10
 In-the-Money 2 2
2nd Quarter Month  Out-of-the-Money 10 10
 In-the-Money 2 2
3rd Quarter Month  Out-of-the-Money 10 10
 In-the-Money 2 2
Total 198

  
** For Mini-HSI Options and Mini-HSCEI Options, CQMM should provide bid / offer quotes in at least 25 option series chosen from the following selection pool:

Contract Month Option Series Series For Selection
Call Put
Spot month  Out-of-the-Money 15 15
 In-the-Money 2 2
2nd Calendar Month  Out-of-the-Money 15 15
 In-the-Money 2 2
1st Quarter Month  Out-of-the-Money 10 10
 In-the-Money 2 2
2nd Quarter Month  Out-of-the-Money 10 10
 In-the-Money 2 2
Total 116


Below is a summary of the CQMM and QRMM program (T +1 Session):

Market Making
Obligation

Provision of
Continuous Quotes (CQ)

Response to
Quote Requests (QR)

Assigned Series

Not less than 50 option series* (except that, not less than 25 option series for Mini-Hang Seng Index Options **)

All QR issued (except for QR in long dated index options)

Trading Requirement

Provision of CQ not less than 35%
of the trading hours in each calendar month

Response to not less than 35%
of the QR in each calendar month

Maximum Time Limit for
Responding to QR

N/A

Response to a QR within 20
seconds of the QR

Minimum Display Time

Not less than 20 seconds, unless a change in the price level of the Spot Month Futures Contracts of the underlying index occurs during the 20 seconds display period, in which case, market makers may change their quotes

Maximum bid/offer spread
(Except for Long Dated Index Options)

For HSI Options and HSCEI Options:

Month

Price

Max. bid/offer spread

1st, 2nd, 3rd, 4th calendar

1-750 points

Max (40 points, 20% of bid)

> 750 points

150 points

1st ,2nd quarter

1-750 points

Max (60 points, 30% of bid)

> 750 points

225 points

3rd quarter

1-750 points

Max (80 points, 40% of bid)

> 750 points

300 points


For Mini-HSI Options:

Month

Price

Max. bid/offer spread

1st, 2nd calendar

1-750 points

Max (40 points, 20% of bid)

> 750 points

150 points

1st quarter

1-750 points

Max (60 points, 30% of bid)

> 750 points

225 points

2nd quarter

1-750 points

Max (60 points, 30% of bid)

> 750 points

225 points

Minimum Quote Size

For HSI Options and HSCEI Options

Month

Min. Quote Size

1st, 2nd, 3rd, 4th calendar

3 contracts

1st ,2nd, 3rd quarter

2 contracts

For Mini-HSI Options

Month

Min. Quote Size

1st, 2nd calendar

3 contracts

1st ,2ndquarter

2 contracts

* For HSI Options and HSCEI Options, CQMM in the T+1 Session should provide bid/offer quotes in at least 50 option series chosen from the following selection pool:  

Contract Month

Option Series

Series For Selection

Call

Put

Spot month

Out-of-the-Money

15

15

In-the-Money

2

2

2ndCalendar Month

Out-of-the-Money

15

15

In-the-Money

2

2

3rdCalendar Month

Out-of-the-Money

15

15

In-the-Money

2

2

4th Calendar Month

Out-of-the-Money

10

10

In-the-Money

2

2

1st Quarter Month

Out-of-the-Money

10

10

In-the-Money

2

2

2nd Quarter Month

Out-of-the-Money

10

10

In-the-Money

2

2

3rd Quarter Month

Out-of-the-Money

10

10

In-the-Money

2

2

Total

198

** For Mini-HSI Options, CQMM in the T+1 Session should provide bid / offer quotes in at least 25 option series chosen from the following selection pool:

Contract Month

Option Series

Series For Selection

Call

Put

Spot month

Out-of-the-Money

15

15

In-the-Money

2

2

2nd Calendar Month

Out-of-the-Money

15

15

In-the-Money

2

2

1st Quarter Month

Out-of-the-Money

10

10

In-the-Money

2

2

2nd Quarter Month

Out-of-the-Money

10

10

In-the-Money

2

2

Total

116


Weekly Stock Index Options

MM for T Session

MM for T+1 Session

For MM that provides continuous quote (CQ):

Min. % of trading hours coverage

70% of T Session

70% of T+1 Session

Min. Quote series

(selected from the pool*)

30 series in total for spot week and next week contracts (or 15 series if only one contract is available.**)

30 series in total for spot week and next week contracts (or 15 series if only one contract is available.**)

Min. Quote Size

5 contracts

5 contracts

Max. bid/offer spread

Price

1-750 points

>750 points

Max. bid/offer spread

Max (30 points, 10% of bid)

75 points

Max. bid/offer spread

Max (40 points, 20% of bid)

150 points

For MM that responds to quote request (QR):

Min. % of QR responses

70% of QR issued in T Session

70% of QR issued in T+1 Session

Max. Time to respond to QR and Min. Display time

20 sec

20 sec

Min. Quote Size

5 contracts

5 contracts

Max. bid/offer spread

Price

1-750 points

>750 points

Max. bid/offer spread

Max (30 points, 10% of bid)

75 points

Max. bid/offer spread

Max (40 points, 20% of bid)

150 points

*CQMM can select options series from the following CQ series selection pool:

Contract Month

Moneyness

Call

Put

Spot Week

Nearest OTM

14

14

Nearest ITM

2

2

Next Week

Nearest OTM

14

14

Nearest ITM

2

2

Total

64


Market Maker (MM) Incentives for Stock Index Futures and Options

Product Market Maker
Fee (HK$)
Market Maker in Other Stock Index
Products with same underlying Index
Fee (HK$)*
Standard
Exchange
Fee (HK$)
Hang Seng Index Futures (HSIF) n.a. 3.50 (MM in HSIO, MHIF or MHIO) 10.00
Hang Seng Index Options (HSIO) 2.00** 3.50 (MM in MHIF or MHIO) 10.00
Weekly Hang Seng Index Options (WHSI) 2.00**  3.50 (MM in HSIO, MHIF or MHIO)  10.00
Mini Hang Seng Index Futures (MHIF) n.a. 1.00 (MM in HSIO, WHSIO or MHIO) 3.50
Mini Hang Seng Index Options (MHIO) 0.40** 0.70 (MM in HSIO, WHSIO or MHIF) 2.00
Hang Seng China Enterprises Index Futures (HHIF) n.a. 1.00 (MM in HHIO or MCHO) 3.50
Hang Seng China Enterprises Index Options (HHIO) 0.50** 1.00 (MM in HHIFor MCHO) 3.50
Weekly Hang Seng China Enterprises Index Options (WHHIO)  0.50**  1.00 (MM in HHIO or MCHO)  3.50
Mini-Hang Seng China Enterprises Index Futures (MCHF) n.a. 0.70 (MM in HHIO, WHHIO or MCHO) 2.00
Mini-Hang Seng China Enterprises Index Options (MCHO) 0.20 0.35 (MM in HHIO) 1.00
HSI Dividend Futures 0.60 n.a. 3.00
HSCEI Dividend Futures 0.30 n.a. 1.50
Hang Seng (Gross Total Return) Index Futures  6.00 n.a. 30.0
Hang Seng (Net Total Return) Index Futures 6.00 n.a. 30.0
Hang Seng China Enterprises (Gross Total Return) Index Futures   2.00 n.a.  10.0
Hang Seng China Enterprises (Net Total Return) Index Futures 2.00  n.a. 10.0
HSI Volatility Index Futures 2.00 n.a. 10.00
Sector Index Futures 0.40 n.a. 2.00

* The number of contracts that are eligible for a reduced Exchange Fee may be limited as specified in the Trading Procedures relating to Stock Index Futures and Stock Index Options contained in the HKFE Rules
**
If the MM performance in T+1 Session is better than the MM Obligation in
T+1 Session, trading fees for the products which the MM make market in the T+1 Session may be waived.  Please refer to the circular (ref: MO/DT/026/18) http://www.hkex.com.hk/-/media/HKEX-Market/Services/Circulars-and-Notices/Participant-and-Members-Circulars/HKFE/2018/MO_DT_026_18_e.pdf for details.

Additional Waiver of Monthly Sub-licence fee for OAPI (CQMM of Weekly Stock Index Options)

No. of OAPI

MM for T Session

MM for T+1 Session

Weekly HSI Options

1 OAPI (HK$2,600 per month)

4 OAPIs (HK$10,400 per month)

Weekly HSCEI Options

1 OAPI (HK$2,600 per month)

4 OAPIs (HK$10,400 per month)


Liquidity Providers Obligations and Incentives of Stock Index Futures

The minimum CQ obligations for each product and applicable LP types are as follows:

 

CQ Obligations

LP Quota

Products

LP Type

Assigned Contract Months

Minimum Quote Quantity

(contracts)

Minimum % Trading Hours Coverage

in T or T+1 Session

Maximum Bid/Offer Spread

i.e. Higher of (a) and (b):

(a) No. of index points

(b) Percentage of bid price

MXJ

Type 1

Nearest 5 calendar quarter months

15

70% (T)

n/a

1st quarter: 0.15%; others: 0.4%

1

Type 1

Nearest 5 calendar quarter months

15

50% (T+1)

n/a

1st quarter: 0.15%; others: 0.4%

1

Incentives

- Trading fee discount, cross-product trading fee rebate, market date fee rebate, hosting services fee rebate and OAPI sub- license fee wavier

 
Liquidity Providers Obligations and Incentives of Hang Seng TECH Index Futures

Contracts

Assigned Contract Months

Minimum % Trading Hours

(T session)

Maximum Bid/Offer Spread

Minimum Quote Quantity
(contracts)

HS TECH Index Futures

Spot Month

65%

0.14% of bid price*

2

* Not obligated to quote spot month contract on Last Trading Day

Incentives

- Trading fee discount, cross-product trading fee rebate, market date fee rebate, hosting services fee rebate and OAPI sub- license fee wavier


Liquidity Providers Obligations and Incentives of Hang Seng TECH Index Options

Contracts Trading Requirement Assigned Series Maximum bid / offer spread (ticks)  Minimum Quote Size (contracts) Minimum % of Trading hours 
Hang Seng TECH Index Options CQ Not less than 50 option series  (choose from Table 1) Refer to Table 2 5 * 65% 

* Not obligated to quote spot month contract on Last Trading Day

Table 1 (Options series selection pool)

Contract Month

Option Series

Series for selection

Call

Put

Spot Calendar Month

Out-of-the-Money

15

15

 

In-the-Money

2

2

Next Calendar Month

Out-of-the-Money

15

15

 

In-the-Money

2

2

First Quarter Month

Out-of-the-Money

10

10

 

In-the-Money

2

2

Second Quarter Month

Out-of-the-Money

10

10

 

In-the-Money

2

2

Total

116

Table 2 (maximum options bid/offer spread)

Contract Month

Option Premium

Maximum Bid/Offer Spread

Spot Calendar Month and Next Calendar Month

1-750 points

30 points or 10% of bid price, whichever is higher

More than 750 points

75 points

First Quarter Month and Second Quarter Month

1-750 points

40 points or 20% of bid price, whichever is higher

More than 750 points

150 points

Incentives
- Trading fee discount, cross-product trading fee rebate, market date fee rebate, hosting services fee rebate and OAPI sub- license fee wavier


Liquidity Providers Obligations and Incentives of MSCI Asia and Emerging Markets Index Futures

Tier 1 (T session)

Contracts

Assigned Contract Months

Minimum % Trading Hours

(T session)

Maximum Bid/Offer Spread

Minimum Quote Quantity
(contracts)

MSCI Taiwan (USD) Index Futures

Spot Month

70%

0.30% of bid price

5

Nearest First Calendar Quarter Month

0.30% of bid price

20

MSCI Taiwan Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

70%

0.38% of bid price

20

MSCI Japan Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

70%

0.20% of bid price

20

MSCI India Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

70%

0.50% of bid price

5

MSCI China Free Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

70%

0.20% of bid price

10

MSCI Indonesia Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

70%

0.60% of bid price

10

MSCI Australia Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

70%

0.25% of bid price

15

MSCI Thailand Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

70%

0.45% of bid price

15

MSCI Malaysia Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

70%

0.45% of bid price

5

MSCI EM Asia Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

70%

0.18% of bid price

15

MSCI Singapore Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

70%

0.45% of bid price

5

MSCI Vietnam Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

70%

0.85% of bid price

5

MSCI Hong Kong Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

70%

0.38% of bid price

5

MSCI Philippines Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

70%

0.75% of bid price

5

MSCI Indonesia Index (USD) Futures

Nearest First Calendar Quarter Month

70%

0.70% of bid price

10

MSCI Emerging Markets Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

70%

0.15% of bid price

20

MSCI Emerging Markets (USD) Index Futures

Nearest First Calendar Quarter Month

70%

0.15% of bid price

20

MSCI India (USD) Index Futures

Nearest First Calendar Quarter Month

70%

0.40% of bid price

5

MSCI China Free (USD) Index Futures

Nearest First Calendar Quarter Month

70%

0.35% of bid price

10

MSCI Thailand (USD) Index Futures

Nearest First Calendar Quarter Month

70%

0.50% of bid price

20

MSCI Malaysia (USD) Index Futures

Nearest First Calendar Quarter Month

70%

0.50% of bid price

5

MSCI Philippines (USD) Index Futures

Nearest First Calendar Quarter Month

70%

0.95% of bid price

5

MSCI Vietnam (USD) Index Futures

Nearest First Calendar Quarter Month

70%

1.00% of bid price

5

MSCI Taiwan 25/50 (USD) Index Futures  Spot Month  70%  0.35% of bid price  5
Nearest First Calendar Quarter Month  70%  0.35% of bid price  10
MSCI Taiwan 25/50 (USD) Net Total Return Index Futures Nearest First Calendar Quarter Month  70%  0.43% of bid price  20

MSCI Singapore Free (SGD) Index Futures

Spot Month

70%

0.35% of bid price

5

Nearest First Calendar Quarter Month

0.30% of bid price

10

MSCI Japan (JPY) Index Futures

Nearest First Calendar Quarter Month

70%

0.20% of bid price

20

MSCI Japan Net Total Return (JPY) Index Futures

Nearest First Calendar Quarter Month

70%

0.38% of bid price

25


Tier 1 (T+1 Session)

Contracts

Assigned Contract Months

Minimum % Trading Hours (T+1 session)

Maximum Bid/Offer Spread

Minimum Quote Quantity
(contracts)

MSCI Taiwan (USD) Index Futures

Spot Month

50%

0.30% of bid price

5

Nearest First Calendar Quarter Month

0.30% of bid price

20

MSCI Taiwan Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

50%

0.38% of bid price

20

MSCI Japan Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

50%

0.15% of bid price

20

MSCI India Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

50%

0.25% of bid price

5

MSCI China Free Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

50%

0.25% of bid price

10

MSCI Indonesia Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

50%

0.60% of bid price

10

MSCI Australia Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

50%

0.25% of bid price

15

MSCI EM Asia Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

50%

0.18% of bid price

15

MSCI Singapore Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

50%

0.45% of bid price

5

MSCI Indonesia Index (USD) Futures

Nearest First Calendar Quarter Month

50%

0.70% of bid price

10

MSCI Emerging Markets Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

50%

0.15% of bid price

20

MSCI India (USD) Index Futures

Nearest First Calendar Quarter Month

50%

0.35% of bid price

5

MSCI China Free (USD) Index Futures

Nearest First Calendar Quarter Month

50%

0.35% of bid price

10

MSCI Taiwan 25/50 (USD) Index Futures   Spot Month  50%  0.35% of bid price  5
 Nearest First Calendar Quarter Mont  50%  0.35% of bid price  20
MSCI Taiwan 25/50 (USD) Net Total Return Index Futures Nearest First Calendar Quarter Month  50%  0.43% of bid price  20

MSCI Singapore Free (SGD) Index Futures

Spot Month

50%

0.35% of bid price

5

Nearest First Calendar Quarter Month

0.30% of bid price

10


Tier 2 ( T Session)

Products

Assigned Contract Months

Minimum % Trading Hours

(T Session)

Maximum Bid/Offer Spread

Minimum Quote Quantity
(contracts)

MSCI Taiwan (USD) Index Futures

Spot

70%

0.08% of bid price

5

Next Calendar Month

0.125% of bid price

5

MSCI Singapore Free (SGD) Index Futures

Spot

70%

0.05% of bid price

5

Next Calendar Month

0.10% of bid price

5

MSCI China Free Net Total Return (USD) Inx Futures  Nearest First Calendar Quarter Month  70%  0.20% of bid price  5

MSCI India Net Total Return (USD) Index Futures

Nearest First Calendar Quarter Month

70%

0.22% of bid price

5

MSCI EM Asia Net Total Return (USD) Index Futures  Nearest First Calendar Quarter Month 70%  0.17% of bid price  5
MSCI Taiwan 25/50 (USD) Index Futures  Spot 70%  20 ticks
Next Calendar Month 70%   30 ticks
MSCI Taiwan 25/50 (USD) Index Futures Calendar Spread Spot/Next Calendar Month 70%   2 ticks  5
MSCI Taiwan (USD) Index Futures Calendar Spread Spot/Next Calendar Month 70%  2 ticks  5
 
Tier 3 (T Session)

Products

Assigned Contract Months

Minimum % Trading Hours

(T Session)

Maximum Bid/Offer Spread

Minimum Quote Quantity
(contracts)

MSCI Taiwan 25/50 (USD) Index Futures

Spot

70%

9 ticks

10

Next Calendar Month

15 ticks

5

Tier 4 (T and T+1 Session)

 Product  Trading Session Assigned Contract Months Minimum % Trading Hours Maximum Bid/Offer Spread  Minimum Quote Quantity (contracts)
MSCI Taiwan (USD) Index Futures  T Session  Spot  70%  2 ticks
 Next Calendar Month  4 ticks
 T+1 Session  Spot  50%  4 ticks
 Next Calendar Month  6 ticks

Tier  5 (T Session)

Product Trading Session Assigned Contract Months Minimum % Trading Hours Maximum Bid/Offer Spread Minimum Quote Quantity (contracts)
MSCI China Free (USD) Index Futures T Session Spot 60% 17 bps 3
Next Calendar Month 25 bps 3
MSCI China Free (USD) Index Futures Calendar Spread T Session Spot/ Spot Next Calendar Month 60% 3 ticks 5

Product Trading Session Minimum % Trading Hours obligation and Minimum Quote Quantity (contracts)
MSCI China Free (USD) Index Options T Session 50%

Options series: 50; Min quote size: 3 lots

Maximum spreads

Spot month and next month:

  • If option premium <= 750 index points: max (90 index pts, 20% bid price)
  • If option premium > 750 index points: 150 index pts

First and second quarterly month:

  • If option premium <= 750 index points: max (120 index pts, 30% bid price)
  • If option premium > 750 index points: 200 index pts
MSCI Taiwan (USD) Index Options T Session 50%

Options series: 50; Min quote size: 3 lots

Maximum spreads

Spot month and next month:

  • If option premium <= 30 index points: max (4.5 index pts, 15% bid price)
  • If option premium > 30 index points: 6 index pts

First and second quarterly month:

  • If option premium <= 30 index points: max (6 index pts, 30% bid price)
  • If option premium > 30 index points: 12 index pts


Incentives for MSCI Asia and Emerging Market Index Futures (Tier 1 and Tier 2)

- Discounted trading fee of USD 0.3 for USD contracts 
- HK$25,000 per contract per trading session per month
- 1 OAPI licence fee waiver per contract
- Bundled fee rebates on HSI Futures and HSCEI Futures on 1:1 volume traded basis in aggregated volume of designated contracts (Max. HK$ 100,000) ( Please refer circular for details)

Incentives for MSCI Asia and Emerging Market Index Futures (Tier 3)

- Discounted trading fee of USD 0.3 for USD contracts 
- HK$300,000 per contract per trading session per month
- 1 OAPI licence fee waiver per contract
- Bundled fee rebates on HSI Futures and HSCEI Futures on 1:1 volume traded basis in aggregated volume of designated contracts (Max. HK$ 100,000) ( Please refer circular for details)

Incentives for MSCI Asia and Emerging Market Index Futures (Tier 4)

- Discounted trading fee of USD 0.3 for USD contracts 
- Cash incentive of HK$ 1.6 million in total for six-month program 
- 1 OAPI licence fee waiver per contract
- 100% trading fee rebate on Hang Seng TECH Index Futures on a 1:1 volume cleared basis according to the monthly aggregated volume of the designed contracts
- Bundled fee rebates on HSI Futures and HSCEI Futures on 1:1 volume traded basis in aggregated volume of designated contracts ( Please refer circular for details)

Incentives for MSCI China Free (USD) Index Futures and Options (Tier 5)

MSCI China Free (USD) Index Futures
- Discounted trading fee of USD 0.3 for futures contracts 
- HK$80,000 per contract per trading session per month
- 4 OAPI licence fee waiver per contract
- Bundled fee rebates on HSI Futures and HSCEI Futures on 1:1 volume traded basis in aggregated volume of  MSCI China Free (USD) Index Futures and options contracts (Max. HK$ 100,000)

MSCI China Free (USD) Index Futures Calendar Spread
- Discounted trading fee of USD 0.3 for futures contracts 
- HK$25,000 per contract per trading session per month
- 2 OAPI licence fee waiver per contract
- Bundled fee rebates on HSI Futures and HSCEI Futures on 1:1 volume traded basis in aggregated volume of  MSCI China Free (USD) Index Futures and options contracts (Max. HK$ 100,000)

MSCI China Free (USD) Index Options
- Discounted trading fee of USD 0.3 for futures and options contracts 
- HK$70,000 per contract per trading session per month
- 4 OAPI licence fee waiver per contract
- Bundled fee rebates on HSI Futures and HSCEI Futures on 1:1 volume traded basis in aggregated volume of  MSCI China Free (USD) Index Futures and options contracts  (Max. HK$ 100,000)

Incentives for MSCI Taiwan (USD) Options (Tier 5)
- Discounted trading fee of USD 0.3 for futures and options contracts 
- HK$70,000 per contract per trading session per month
- 4 OAPI licence fee waiver per contract
- Bundled fee rebates on HSI Futures and HSCEI Futures on 1:1 volume traded basis in aggregated volume of  Eligible contracts (Max. HK$100,000)
- Bundled fee rebates on HS TECH Futures on 1:1 volume traded basis in aggregated volume of  Eligible contracts 

Block Trade Participant (BTP) Program

Requirement:
- The minimum block trade execution volume requirement is 20,000 contracts per quarter in total for the MSCI Asia and Emerging Market Index Futures.
Performance measurement:
- BTP will be ranked based on the total number of valid block trade contracts executed in the MSCI Asia and Emerging Market Index Futures.
   Only the top three BTPs in any given quarter will receive incentives.

Incentive:

1) The first BTP is entitled HK$1,200,000; the second BTP is entitled HK$450,000 and the third BTP is HK$150,000
 
 

Stock Futures

Market Maker Scheme

Market Making Obligation

Market Making
Obligation
Provision of
Continuous Quotes (CQ)
Response to
Quote Requests (QR)
Assigned Contract At least the first 2 contract months
[i.e. Spot Month and the next calendar month]
All contract months
Trading Requirement Provision of CQ for not less than 70% of the trading hours in each calendar month Response to not less than 70% of the QR in each calendar month
 
Maximum Time Limit for Responding to QR
 
N/A Response to a QR within 10 seconds
Minimum Display Time Not less than 20 seconds, unless a change in the nominal price of the underlying stock occurs during that period, in which case, the MM may change its Quote provided
 
Maximum Bid/Offer Spread
 
4 times the best bid / offer spread of the underlying stock or HK$0.15, whichever is greater
Minimum Quote Size
 
A minimum of 10 contracts

 

Market Maker Incentives for Stock Futures

Product Market Maker Fee
(HK$)
Standard Exchange Fee
(HK$)
Stock Futures Subject to fulfilment the obligations,  Market Maker in HK Stock Futures will be entitled to trading fee waiver (except for stock futures on Tracker Fund of Hong Kong and Hang Seng China Enterprises Index ETF)
 Tier 1: HK$3.0;  Tier 2: HK$1.0; Tier 3: HK$0.5

Liquidity Provider Program

Liquidity Provider be required to provide continuous quotes in any of the stock futures contracts below:

Stock Code

Underlying Stock

Minimum Quote Quantity (contracts)

Assigned Contract Months

Minimum % Trading Hours Coverage

Max Bid/Ask Spread

5

HSBC Holdings Plc.

10

Spot and next calendar month

70%

4 times the best bid / offer spread of the underlying stock or HK$0.15, whichever is greater

388

Hong Kong Exchanges and Clearing Limited

10

700

Tencent Holdings Ltd.

10

939

China Construction Bank Corporation

10

941

China Mobile Limited

10

1398

Industrial and Commercial Bank of China Limited

10

2318

Ping An Insurance (Group) Company of China, Ltd.

10

2822

CSOP FTSE China A50 ETF

10

2823

iShares FTSE A50 China Index ETF

10

3188

China AMC CSI300 Index ETF

10

27

Galaxy Entertainment Group Limited

                 5 

Spot and next calendar month

70%

4 times the best bid / offer spread of the underlying stock or 0.5% of Quotation bid, whichever is greater

175

Geely Automobile Holdings Limited

5

386

China Petroleum & Chemical Corporation

20

  788  China Tower Corporation Limited  5

883

CNOOC Limited

20

914

Anhui Conch Cement Company Limited

5

1299

AIA Group Limited

5

1810

XiaoMi Corporation

5

1918

Sunac China Holdings Limited

5

1928

Sands China Ltd

5

2007

Country Garden Holdings Company Limited

5

2018

AAC Technologies Holdings Inc

2

2382

Sunny Optical Technology

2

2628

China Life Insurance Company Limited

20

3333

China Evergrande Group

5

3968

China Merchants Bank Co., Ltd.

10

9618 JD.com, Inc                  5 
    9988 Alibaba Group Holdings Limited                5
    9999  NetEase, Inc.                5
 Note: LP shall not be required to fulfill liquidity providing requirements during the first five minutes of each morning trading session.

Incentives for Liquidity Providers

a) Subject to fulfilment the obligations, Liquidity Providers will be entitled to trading fee waiver (except for stock futures on Tracker fund oh Hong Kong and Hang Seng Enterprises Index ETF)

b) Waiver of two OMnet Application Programming Interface (OAPI) monthly sub-licence fee (i.e. HK$5,200 per month or equivalent) per selected stock futures contract; and

c) Waiver of one-off fee for applying for an increase in the Central Gateway throughput rate  (Securities Throttle) by one standard Securities Throttle rate (i.e. HK$50,000) per selected stock futures contract.

 

Stock Options

There are three types of market makers in HKEX’s stock options market: 

- Primary Market Maker (PMM);

- Market maker providing continuous quotes (CQMM); and

- Market maker responding to quote request (QRMM). 

For details of PMM Program, please refer to the hyperlink below:

http://www.hkex.com.hk/eng/market/dv_tradfinfo/pmm.htm

 Below is a summary of the CQMM and QRMM program:

Market Making
Obligation
Provision of
Continuous Quotes (CQ)
Response to
Quote Requests (QR)
Assigned Series # Not less than 50 option series in an option class
 
QR issued in options series in an option class
Trading Requirement Provision of CQ for the assigned option series in an option class for 50% or more of the trading hours in a month
 
Response to 50% or more QR in an option class in a month
Maximum Time Limit for Responding to QR
 
N/A Response within 20 seconds on receipt of  a QR
Minimum Display Time (QR) N/A At least 20 seconds, unless a change in the underlying stock price occurs during the 20 seconds display period
 
Maximum Bid/Offer Spread Option Series Liquidity Level 1* Liquidity Level 2*
Spot month with 3 days or less to expiry 20% of the bid price of the quote or 3 times the best bid/offer spread of the underlying securities, whichever is the lower. 20% of the bid price of the quote or 4 times the best bid/offer spread of the underlying securities, whichever is the lower.
 
Spot month with 4 days or more to expiry and the next 3 calendar expiry months 10% of the bid price of the quote or 3 times the best bid/offer spread of the underlying securities, whichever is the lower. 10% of the bid price of the quote or 4 times the best bid/offer spread of the underlying securities, whichever is the lower.
 
The next 2 calendar quarter expiry months 20% of the bid price of the quote or 4 times the best bid/offer spread of the underlying securities, whichever is the lower.
 
20% of the bid price of the quote or 6 times the best bid/offer spread of the underlying securities, whichever is the lower.
The 3rd calendar quarter expiry month and any other longer-dated expiry month as the Exchange deems necessary 20% of the bid price of the quote or 8 times the best bid/offer spread of the underlying securities, whichever is the lower.
 
20% of the bid price of the quote or 12 times the best bid/offer spread of the underlying securities, whichever is the lower.
Minimum Quote Size Liquidity Level  1 -  30 contracts Liquidity Level  2 -  15 contracts
 

  *   Liquidity Level Classification
“Notwithstanding the above, a Market Maker that provides quotes in option classes with a minimum price fluctuation of HK$0.01 or RMB0.01 will not be obliged to quote a spread narrower than the best bid/offer of the underlying security (at the time of issuing the quote) plus 5 minimum price fluctuations (if the numerical value of the nominal price of such underlying security is below 100) or plus 10 minimum price fluctuations (if the numerical value of the nominal price of the underlying security is equal to or above 100), and a Market Maker that provides quotes in option classes with a minimum price fluctuation of HK$0.001 or RMB0.001 will not be obliged to quote a spread narrower than HK$0.03 or RMB0.03.”

 

Liquidity levels of option classes are determined by the Exchange from time to time based on the trading liquidity in the underlying stocks  

 

Stock Option Class HKATS Code From 31 March 2021         
to 29 April 2021 
       
From 30 April 2021       
to 28 May 2021
           
  Liquidity Level Minimum Quote Size Liquidity Level Minimum Quote Size
iShares FTSE A50 China Index ETF A50 1 30 lots 1 30 lots
AAC Technologies Holdings Inc AAC 2 15 lots 2 15 lots
Anhui Conch Cement Company Limited ACC 2 15 lots 2 15 lots
AIA Group Limited AIA 2 15 lots 2 15 lots
Air China Ltd.   AIR 2 15 lots 2 15 lots
Alibaba Group Holding Limited  ALB 1 30 lots 1 30 lots 
Aluminum Corporation of China Limited ALC 1 30 lots 1 30 lots
Alibaba Health Information Technology Ltd. ALH 2 15 lots 2 15 lots
ChinaAMC CSI 300 Index ETF AMC 2 15 lots 2 15 lots
ANTA Sports Products Ltd ANA  2  15 lots 2 15 lots 
Bank of Communications Company Limited BCM 1 30 lots 1 30 lots
The Bank of East Asia, Limited BEA 2 15 lots 2 15 lots
Baidu, Inc. BIU 2 15 lots 2 15 lots
Bilibili Inc.
 BLI 2 15 lots 2 15 lots
BOC Hong Kong (Holdings) Limited BOC 1 30 lots 1 30 lots
Budweiser Brewing Company APAC Limited BUD 2 15 lots 2 15 lots
BYD Company Limited BYD 2 15 lots 2 15 lots
China Communications Construction Company Limited CCC 1 30 lots 1 30 lots
China Coal Energy Company Limited CCE 1 30 lots 1 30 lots
China Cinda Asset Management Company Limited CDA 1 30 lots 1 30 lots
CGN Power Co., Ltd CGN 1 30 lots 1 30 lots
China Mobile Limited CHT 1 30 lots 1 30 lots
China Unicom (Hong Kong) Limited CHU 1 30 lots 1 30 lots
CITIC Limited CIT 1 30 lots 1 30 lots
CK Hutchison Holdings Limited CKH 2 15 lots 2 15 lots
CK Asset Holdings Limited CKP 2 15 lots 2 15 lots
China Life Insurance Company Limited CLI 1 30 lots 1 30 lots
CLP Holdings Limited CLP 2 15 lots 2 15 lots
China Merchants Bank Company Limited CMB 2 15 lots 2 15 lots
CNOOC Limited CNC 1 30 lots 1 30 lots
Country Garden Holdings Co. Ltd COG 2 15 lots 2 15 lots
China Overseas Land & Investment Limited  COL 2 15 lots 2 15 lots
Cathay Pacific Airways Limited CPA 2 15 lots 1 30 lots
China Petroleum & Chemical Corporation CPC 1 30 lots 1 30 lots
China Pacific Insurance (Group) Company Limited CPI 2 15 lots 2 15 lots
China Railway Construction Corporation Limited CRC 1 30 lots 1 30 lots
China Railway Group Limited  CRG 1 30 lots 1 30 lots
China Resources Land Ltd CRL 2 15 lots 2 15 lots
CSOP FTSE China A50 ETF CSA 1 30 lots 1 30 lots
China Shenhua Energy Company Limited CSE 1 30 lots 1 30 lots
CSPC Pharmaceutical Group Ltd.   CSP 2 15 lots 2 15 lots
China CITIC Bank Corporation Limited CTB 1 30 lots 1 30 lots
China Telecom Corporation Limited CTC 1 30 lots 1 30 lots
CITIC Securities Co. Ltd. CTS 2 15 lots 2 15 lots
Dongfeng Motor Group Company Limited DFM 2 15 lots 2 15 lots
China Evergrande Group  EVG 2 15 lots 2 15 lots
Guangzhou Automobile Group Co. Ltd. GAC 2 15 lots 2 15 lots
Geely Automobile Holdings Ltd. GAH 2 15 lots 2 15 lots
Galaxy Entertainment Group Limited GLX 2 15 lots 2 15 lots
Great Wall Motor Company Limited GWM 1 30 lots  1 30 lots
Haitong Securities Co, Ltd HAI 2 15 lots 2 15 lots
Hang Seng H-Share Index ETF HCF 1 30 lots 1 30 lots
Power Assets Holdings Limited HEH 2 15 lots 2 15 lots
Hong Kong Exchanges and Clearing Limited HEX 2 15 lots 2 15 lots
Hengan International Group Co. Limited HGN 2 15 lots 2 15 lots
HSBC Holdings Plc. HKB 1 30 lots 1 30 lots
The Hong Kong and China Gas Company Limited HKG 1 30 lots 1 30 lots
Henderson Land Development Company Limited HLD 2 15 lots 2 15 lots
Huaneng Power International, Inc. HNP 1 30 lots 1 30 lots
Hang Seng Bank Limited  HSB 2 15 lots 2 15 lots
 JD.com, Inc. JDC  2 15 lots 2 15 lots 
JD Health International Inc. JDH 2  15 lots 2 15 lots
Jiangxi Copper Company Limited JXC 2 15 lots 2 15 lots
Kingdee International Software Group Co., Ltd. KDS 2 15 lots 2 15 lots
Kunlun Energy Company Limited KLE 2 15 lots 2 15 lots
Kingsoft Corporation Limited KSO 2 15 lots 2 15 lots
Kuaishou Technology KST 2 15 lots 2 15 lots
Lenovo Group Limited LEN 1 30 lots 1 30 lots
Link Real Estate Investment Trust LNK 2 15 lots 2 15 lots
China Mengniu Dairy Co Ltd MEN 2 15 lots 2 15 lots
Meituan Dianping MET 2 15 lots 2 15 lots 
MGM China Holdings Limited MGM 2 15 lots 2 15 lots
XiaoMi Corporation MIU  1 30 lots 1 30 lots
China Minsheng Banking Corporation MSB 1 30 lots 1 30 lots
MTR Corporation Limited MTR 2 15 lots 2 15 lots
China National Building Material Company Limited NBM 2 15 lots 2 15 lots
New China Life Insurance Co. Ltd NCL 2 15 lots 2 15 lots
NetEase, Inc.   NTE 2  15 lots 2 15 lots 
New World Development Company Limited NWD 2 15 lots 2 15 lots
Ping An Insurance (Group) Company of China, Limited PAI 1 30 lots 1 30 lots
PetroChina Company Limited PEC 1 30 lots 1 30 lots
Ping An Healthcare and Technology Co., Ltd. PHT 2 15 lots 2 15 lots
PICC Property and Casualty Company Limited PIC 1 30 lots 1 30 lots
The People’s Insurance Company (Group) of China Limited PIN 1 30 lots 1 30 lots
Guangzhou R&F Properties Company Limited RFP 1 30 lots 1 30 lots
Sands China Limited SAN 1 30 lots 1 30 lots
Sino Biopharmaceutical Limited   SBO 2 15 lots 15 lots 
Sun Hung Kai Properties Limited SHK 2 15 lots 2 15 lots
Shenzhou International Group Holdings Limited  SHZ 2 15 lots 15 lots 
Semiconductor Manufacturing International Corp. SMC 2 15 lots 2 15 lots
Sunny Optical Technology (Group) Co. Ltd. SNO 2 15 lots 2 15 lots
Sinopharm Group Co. Ltd. SNP 2 15 lots 2 15 lots 
Standard Chartered PLC STC 2 15 lots 2 15 lots
Sunac China Holdings Ltd. SUN 2 15 lots 2 15 lots
Swire Pacific Limited 'A' SWA 2 15 lots 2 15 lots
Tencent Holdings Limited  TCH 1 30 lots 1 30 lots
Techtronic Industrial Co., Limited TIC 2 15 lots 15 lots 
Tracker Fund of Hong Kong TRF 1 30 lots 1 30 lots
China Vanke Co. Ltd.  VNK 2 15 lots 2 15 lots 
 WH Group Limited  WHG 2 15 lots 2 15 lots
The Wharf (Holdings) Limited WHL 2 15 lots 2 15 lots
Want Want China Holdings Limited WWC 1 30 lots 1 30 lots
WuXi Biologics (Cayman) Inc. WXB 2 15 lots 2 15 lots
Agricultural Bank of China Limited XAB 1 30 lots  1 30 lots 
Bank of China Limited  XBC 1 30 lots 1 30 lots 
China Construction Bank Corporation  XCC 1 30 lots  1 30 lots 
Industrial and Commercial Bank of China Limited  XIC 1 30 lots  1 30 lots
Postal Savings Bank of China Co. Ltd.   XPB 1 30 lots 1 30 lots 
China Tower Corporation Limited  XTW 1 30 lots 1 30 lots
Yanzhou Coal Mining Company Limited YZC 2 15 lots 2 15 lots
Zijin Mining Group Company Limited  ZJM 2 15 lots 2 15 lots

Changes in liquidity level are in bold

 

#   Stock Options

CQMM should provide bid / offer quotes in at least 50 option series chosen from the following option series:    
 

Contract Month Option Series Series For Selection
   
Call Series
Put Series
Spot month Nearest Out-of-the-Money 7 7
Nearest In-the-Money 2 2
Second Calendar month Nearest Out-of-the-Money 7 7
Nearest In-the-Money 2 2
Third Calendar month Nearest Out-the-Money 7 7
Nearest In-of-the-Money 2 2
Fourth Calendar month Nearest Out-the-Money 7 7
Nearest In-of-the-Money 2 2
First Quarter month Nearest Out-the-Money 7 7
Nearest In-of-the-Money 2 2
Second Quarter month Nearest Out-the-Money 7 7
Nearest In-of-the-Money 2 2
Third Quarter month Nearest Out-the-Money 7 7
Nearest In-of-the-Money 2 2
Total 126

Market Maker Incentives for Stock Options 

Stock
Options
Tier
Trading Requirement Market
Maker
Fee (HK$)
Standard
Exchange
Fee (HK$)
Tier 1 Response to Total
Quote Requests in a Month
70% or more 1.50 3.00
less than 70% 3.00 3.00
Provision of Continuous Quotes
in the Trading Hours in a Month
70% or more 1.50 3.00
less than 70% 3.00 3.00
Tier 2  Response to Total
Quote Requests in a Month
70% or more 0.80 1.00
less than 70% 1.00 1.00
Provision of Continuous Quotes
in the Trading Hours in a Month
70% or more 0.80 1.00
less than 70% 1.00 1.00
Tier 3^ Response to Total
Quote Requests in a Month
70% or more 0.40 0.50
less than 70% 0.50 0.50
Provision of Continuous Quotes
in the Trading Hours in a Month
70% or more 0.40 0.50
less than 70% 0.50 0.50

 

Currency Futures 

Market Maker Obligations for USD/CNH Futures

Market Making
Obligation
Provision of
Continuous Quotes (CQ)
Response to
Quote Requests (QR)
Assigned Contract 9  contract months
[i.e. Spot month, the next three calendar months and the next five calendar quarter months]
 
Trading Requirement

Provision of CQ for not less than 70% of the trading hours in each calendar month (Primary Market Maker)

Provision of CQ for not less than 40% of the trading hours in each calendar month (Secondary Market Maker)

Response to not less than 70% of the QR in each calendar month (Primary Market Maker)

Response to not less than 40% of the QR in each calendar month (Secondary Market Maker)

Maximum Time Limit for Responding to QR
 
N/A Response to a QR within 10 seconds
Maximum Bid/Offer Spread
 

From 9:00am to end of the day trading session:

20 ticks for spot and next calendar months 
50 ticks for 3rd and 4th calendar months
80 ticks for 1st, 2nd, 3rd and 4th calendar quarter months
100 ticks for 5th calendar quarter month

For the after-hours trading session:

20 ticks for spot and next calendar months 
60 ticks for 3rd and 4th calendar months
100 ticks for 1st, 2nd, 3rd, 4th and 5th calendar quarter months

Minimum Quote Size
 
A minimum of 10 contracts

 

Market Maker Obligations for EUR/CNH, JPY/CNH and AUD/CNH Futures

Market Making
Obligation
Provision of
Continuous Quotes (CQ)
Response to
Quote Requests (QR)
Assigned Contract 4 contract months
[i.e. Spot month, the next calendar month and the next two calendar quarter months]
Trading Requirement

Provision of CQ for not less than 70% of the trading hours in each calendar month (Primary Market Maker)

Provision of CQ for not less than 40% of the trading hours in each calendar month (Secondary Market Maker)

Response to not less than 70% of the QR in each calendar month (Primary Market Maker)

Response to not less than 40% of the QR in each calendar month (Secondary Market Maker)

Maximum Time Limit for Responding to QR
N/A Response to a QR within 10 seconds
Maximum Bid/Offer Spread

50 ticks for spot and next calendar months
100 ticks for other calendar months

Minimum Quote Size
A minimum of 10 contracts

 

Market Maker Obligations for CNH/USD Futures

Market Making
Obligation
Provision of
Continuous Quotes (CQ)
Response to
Quote Requests (QR)
Assigned Contract 9 contract months
[i.e. Spot month, the next two calendar months and the next five calendar quarter months]
Trading Requirement

Provision of CQ for not less than 70% of the trading hours in each calendar month (Primary Market Maker)

Provision of CQ for not less than 40% of the trading hours in each calendar month (Secondary Market Maker)

Response to not less than 70% of the QR in each calendar month (Primary Market Maker)

Response to not less than 40% of the QR in each calendar month (Secondary Market Maker)

Maximum Time Limit for Responding to QR
N/A Response to a QR within 10 seconds
Maximum Bid/Offer Spread

5 ticks for spot and next calendar months
10 ticks for 3rd and 4th calendar months
15 ticks for 1st, 2nd, 3rd, 4th and 5th calendar quarter months

Minimum Quote Size
A minimum of 10 contracts

 

Market Maker Incentives for USD/CNH, EUR/CNH, JPY/CNH, AUD/CNH and CNH/USD Futures

Product Market Maker Fee
(RMB)
Standard Exchange Fee

USD/CNH Futures Nil RMB 8.00
 EUR/CNH Futures  As specified in appointment letter  RMB 5.00
 JPY/CNH Futures  As specified in appointment letter   RMB 5.00
 AUD/CNH Futures   As specified in appointment letter  RMB 5.00
 CNH/USD Futures   As specified in appointment letter  USD 0.60

 

Liquidity Provider Obligations on EUR/CNH, JPY/CNH and AUD/CNH Futures

Liquidity Provider Obligation Provision of Continuous Quotes (CQ)
Assigned Contract

All contract months

Trading Requirement Provision of CQ for not less than 70% of the trading hours in the assigned calendar months
Maximum Bid/Offer Spread
 

EUR/CNH Futures: 50 ticks for spot and next months, 80 ticks for next two quarter months

JPY/CNH Futures: 50 ticks for spot and next months, 80 ticks for next two quarter months

AUD/CNH Futures: 50 ticks for spot and next months, 80 ticks for next two quarter months

Minimum Quote Size A minimum of 10 contracts

 

Liquidity Provider Obligations on CNH/USD Futures

Liquidity Provider Obligation Provision of Continuous Quotes (CQ)
Assigned Contract

Spot, 2nd, 3rd, 4th calendar months and 1st, 2nd, 3rd and 4th calendar quarter months

Trading Requirement Provision of CQ for not less than 50% of the trading hours in the assigned calendar months
Maximum Bid/Offer Spread

5 ticks for spot and next calendar months, 15 ticks for 3rd and 4th calendar months, 25 ticks for 1st, 2nd, 3rd and 4th calendar quarter months

Minimum Quote Size A minimum of 10 contracts

 

Liquidity Provider Incentives for EUR/CNH, JPY/CNH, AUD/CNH and CNH/USD Futures

(i)    100% rebate of trading fee; and

(ii)   Certain connection subsidies depending on the number of the Additional RMB Currency Futures products which the Liquidity Providers provide liquidity for.

 

For more details of the Bundled Liquidity Providing Incentive Program for USD/CNH, AUD/CNH, EUR/CNH, JPY/CNH, CNH/USD, INR/USD and INR/CNH Futures as well as USD/CNH Options, please visit the hyperlink below, and refer to the Incentives section under Related Circulars:

https://www.hkex.com.hk/Products/Listed-Derivatives/Foreign-Exchange/Publications-and-Announcements?sc_lang=en 

 

For more details of the Cash Incentive Program for USD/CNH and INR/USD Futures, please visit the hyperlink below, and refer to the Incentives section under Related Circulars:

https://www.hkex.com.hk/Products/Listed-Derivatives/Foreign-Exchange/Publications-and-Announcements?sc_lang=en 

 

HIBOR Futures

Market Maker Obligations - One-Month HIBOR Futures (HB1)

Market Making
Obligation
Provision of
Continuous Quotes (CQ)
Response to
Quote Requests (QR)
Assigned Contract
 
Not less than first 3 contract months
Trading Requirement Provision of CQ for not less than 70% 
of the trading hours in each calendar month
 
Response to not less than 70%
of the QR in each calendar month
Maximum Time Limit for Responding to QR
 
N/A Within 30 seconds on receipt of a QR
Minimum Display Time
 
Not less than 15 seconds
Maximum Bid/Offer Spread
 
Not greater 10 Minimum Fluctuations Not greater 7 Minimum Fluctuations
Minimum Quote Size
 
Not less than 5 contracts Not less than 10 contracts
Non-Market Making Hours A market maker shall not be required to meet the trading requirements during the following period:
1.  The first 5 minutes of each morning trading session; and
2.  11:30 a.m. to 12:00 noon and from 1:30 p.m. to 2:00 p.m. on each Business Day.

 
Market Market Obligations - Three-Month HIBOR Futures (HB3)

Market Making
Obligation
Provision of
Continuous Quotes (CQ)
Response to
Quote Requests (QR)
Assigned Contract
 
Spot contract month plus not less than the first 4 quarter contract months
Trading Requirement Provision of CQ for not less than 70%
of the trading hours in each calendar month
 
Response to not less than 70%
of the QR in each calendar month
Maximum Time Limit for Responding to QR N/A Response to a QR on an assigned
contract month within 30 seconds of the QR
 
Minimum Display Time
 
Not less than 15 seconds
Maximum Bid/Offer Spread Not greater than 10 minimum fluctuations
 
not greater than 7 minimum fluctuations
Minimum Quote Size
   
not less than 5 contracts not less than 10 contracts
Non-Market Making Hours A market maker shall not be required to meet the trading requirements during the following period:
1.  The first 5 minutes of each morning trading session; and
2. 11:30 a.m. to 12:00 noon and from 1:30 p.m. to 2:00 p.m. on each Business Day.

Market Maker Incentives for HIBOR Futures

Product Market Maker Fee
HK$
Standard Fee
HK$
One-Month HIBOR Futures
Three-Month HIBOR Futures
1.00 5.00

The appointments of LPs are subject to commercial agreements between the Exchange and LPs in terms of price quoting services and incentives.  The Chief Executive of HKFE may, at his sole discretion, waive parts of the obligations in view of adverse market conditions which may arise from time to time. 

 

Commodities Products 

USD and CNH Gold Futures

Obligations

USD & CNH Gold Futures

LP Type

6

7

4 (Option A)

4 (Option B)

4 (Option C)

CQ or QR

CQ

Contract Months

Any 2 of the following contracts: Spot Month (M), M+1, M+2, the next Jun or the next Dec contracts

Any 2 of the following contracts:

M, M+1 or M+2

M and M+1

Max. Bid / Offer Spread

M:

4 ticks(T)

6 ticks(T+1)

M+1:

3 ticks(T)

3 ticks(T+1)

Farthest month:

3 ticks(T)

3 ticks(T+1)

Other months:

3 ticks(T)

3 ticks(T+1)

M:

4 ticks(T)

6 ticks(T+1)

M+1:

3 ticks(T)

4 ticks(T+1)

Farthest month:

3 ticks(T)

4 ticks(T+1)

Other months:

3 ticks(T)

4 ticks(T+1)

M:

4 ticks(T)

6 ticks(T+1)

M+1:

3 ticks(T)

3 ticks(T+1)

M+2:

3 ticks(T)

3 ticks(T+1)

 

M: 4 ticks

M+1: 4 ticks

 

M: 5 ticks

M+1: 5 ticks

 

Quote Size (contracts)

6

3

6

6

12

% of Trading Hours

50% (T) or

40% (T+1)

40% (T) or

30% (T+1)

70% (T) or

60% (T+1)

50% (T or T+1) and 94% of LTD

40% (T or T+1) and 94% of LTD

Incentives:

Subject to fulfilment of obligations, Liquidity Provider (“LP”) will enjoy cross-product trading fees, market data fee and hosting services fee and OAPI sub-licence fee waivers.   

 

USD and CNH Silver Futures

Obligations

USD & CNH Silver Futures

LP Type

4 (Option A)

6

7

4 (Option B)

CQ or QR

CQ

Contract Months

Any 2 of the following contracts:

M, M+1, M+2, the next Jun or the next Dec contracts

M and M+1

Max. Bid / Offer Spread

M:

16 ticks(T)

15 ticks(T+1)

M+1:

13 tick(T)

14 ticks(T+1)

Farthest month:

14 ticks(T)

14 ticks(T+1)

Other months:

13 ticks(T)

14 ticks(T+1)

M:

16 ticks(T)

15 ticks(T+1)

M+1:

14 tick(T)

15 ticks(T+1)

Farthest month:

14 tick(T)

15 ticks(T+1)

Other months:

14 tick(T)

15 ticks(T+1)

M: 15 ticks

M+1: 14 ticks

 

Quote Size (contracts)

20

10

15

15

% of Trading Hours

70% (T) or

60% (T+1)

50% (T) or

40% (T+1)

40% (T) or

30% (T+1)

50% (T or T+1) and 94% of LTD

Incentives:

Subject to fulfilment of obligations, Liquidity Provider (“LP”) will enjoy cross-product trading fees, market data fee and hosting services fee and OAPI sub-licence fee waivers.  

 

Iron Ore Futures

Obligation

Iron Ore Futures

(Monthly Contracts)

LP Type

5 (Option A)

5 (Option B)

5 (Option C)

CQ or QR

CQ

Contract Months

Any 3 of the followings:

M, the next 5 contract months, next January, May or September

M+1 and M+2

Any 2 of the following contract series:

- M / M+1 calendar month

- M+1/ M+2 calendar month

- M+2/ M+3 calendar month

- M+3/ M+4 calendar month

- M+4/ M+5 calendar month

Max. Bid / Offer Spread

When Bid Price <$100

15 ticks

M and other months: 40 ticks

M+1 and M+2: 30 ticks

M+1: 25 ticks

M+2: 30 ticks

When Bid Price >=$100

Additional 5 ticks added on all obligations above

Quote Size (contracts)

5

25

% of Trading Hours

50% (T)

60% (T)

60% (T)

Incentives:

Subject to fulfilment of obligations, Liquidity Provider (“LP”) will enjoy cross-product trading fees, market data fee and hosting services fee and OAPI sub-licence fee waivers.  

 

USD London Metal Mini Futures

Obligations

USD London Metal Mini Futures (Bundled Liquidity Providing Incentive Program)

USD London Mini Metal Futures (Cash Incentive Program)

LP Type

1

 N/A

CQ or QR

CQ

 CQ

Contract Months

Any 3 of the followings:

M, M+1, M+2 or M+3

M+2 and Any 2 of the followings:

M, M+1 or M+3

Contracts

Copper

Aluminium

Zinc

 Copper  Aluminium  Zinc

Max. Bid / Offer Spread

M+2

 M+2

5 ticks

3 ticks

4 ticks

 5 ticks 3 ticks  4 ticks 

Other Months

Other Months 

6 ticks

4 ticks

4 ticks

6 ticks  4 ticks   4 ticks

Quote Size (contracts)

10

10

10

 10 10   10

% of Trading Hours

70% (T or T+1)

 70% (T or T+1)

Incentives:

Each Liquidity Provider ("LP") will receive incentives upon fulfilment to its obligations.

 

For more details of the Bundled Liquidity Providing Incentive Program for Commodities Products, please refer to the hyperlinks below:

https://www.hkex.com.hk/-/media/HKEX-Market/Services/Circulars-and-Notices/Participant-and-Members-Circulars/HKFE/2021/MKD_CMD_003_21_EN.pdf

For more details of the Cash Incentive Program for USD London Metal Mini Futures, please refer to the hyperlink below:

https://www.hkex.com.hk/-/media/HKEX-Market/Services/Circulars-and-Notices/Participant-and-Members-Circulars/HKFE/2021/MKD_CMD_001_21_EN.pdf



Updated 19 Jul 2017