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HKEX Derivatives Information for Overseas Investors

Information for Investors in the United States
HKEX grants US investors access to certain index futures and options traded on HKEX's markets in according with the rules and guidance of  the US Commodity Futures  Trading Commission (CFTC) and the US Securities and Exchange Commission (SEC) .           
B02A24241D934714AD273561037F6D6D Equity Index Futures for US Investors (Broad-Based)
The CFTC approved certain HKEX listed equity index futures (Eligible Broad-Based Index Futures), providing access to eligible US investors. The CFTC has also granted an exemption to Hong Kong allowing HKFE participants to deal directly with US investors.
B02A24241D934714AD273561037F6D6D Eligible US Investors
Under no-action relief by CFTC, all US investors can trade Eligible Broad-Based Security Index Futures.
B02A24241D934714AD273561037F6D6D Eligible Broad-Based Security Index Futures
Hang Seng Index Futures
Hang Seng China Enterprises Index Futures
Mini-Hang Seng Index Futures
Mini-Hang Seng China Enterprises Index Futures
CES China 120 Index Futures
HSI Volatility Index (VHSI) Futures
    MSCI AC Asia ex Japan Net Total Return Index (MSCI AxJ) 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
    MSCI Australia Net Total Return (USD) Index Futures
    MSCI China Free (USD) Index Futures
    MSCI China Free Net Total Return (USD) Index Futures
    MSCI Emerging Markets (USD) Index Futures
    MSCI Emerging Markets Asia ex China Net Total Return (USD) Index Futures
    MSCI Emerging Markets Asia ex Korea Net Total Return (USD) Index Futures
    MSCI Emerging Markets Asia Net Total Return (USD) Index Futures
    MSCI Emerging EMEA Net Total Return (USD) Index Futures
    MSCI Emerging Markets ex China Net Total Return (USD) Index Futures
    MSCI Emerging Markets ex Korea Net Total Return (USD) Index Futures
    MSCI Emerging Markets LatAm Net Total Return (USD) Index Futures
    MSCI Emerging Markets Net Total Return (USD) Index Futures
    MSCI Hong Kong Net Total Return (USD) Index Futures
    MSCI India (USD) Index Futures
    MSCI India Net Total Return (USD) Index Futures
    MSCI Japan Net Total Return (USD) Index Futures
    MSCI Malaysia (USD) Index Futures
    MSCI Malaysia Net Total Return (USD) Index Futures
    MSCI Pacific ex Japan Net Total Return (USD) Index Futures
    MSCI Pacific Net Total Return (USD) Index Futures
    MSCI Singapore Free Net Total Return (USD) Index Futures
    MSCI Thailand (USD) Index Futures
    MSCI Thailand Net Total Return (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
     
B02A24241D934714AD273561037F6D6D HKFE Participants Trading Arrangement with Eligible US Investors
The CFTC has granted Regulation Part 30.10 Exemption for Hong Kong qualified HKFE participants that are licensed corporations with the Securities and Futures Commission (SFC) to deal directly with US investors after successfully submitting an application with the US National Futures Association via the SFC. (For details of the application procedure, please refer to the SFC website)
B02A24241D934714AD273561037F6D6D Related Documents
Circular - CFTC Regulation Part 30.10 Exemption for Hong Kong
Circular - HKEX obtains US CFTC Approval for CES 120 and VHSI Futures Contracts
Circular - No-Action Relief from U.S. Commodity Futures Trading Commission (CFTC) in Connection with the Offer and Sale in the U.S. of Mini Futures Contracts on Hang Seng Index (HSI) and Hang Seng China Enterprises Index (HSCEI)
    Circular - HKEX obtains US Commodity Futures Trading Commission approval for MSCI ACAsia ex Japan Net Total Return Index Futures contracts
    Circular - HKFE obtains U.S. Commodity Futures Trading Commission certification for 23 MSCI Asia and Emerging Markets Index Futures Contracts and updates on two MSCI Singapore Index Futures Contracts
     
 B02A24241D934714AD273561037F6D6D  Equity Index Futures for US Investors (Narrow-Based) 
    Eligible US market participants may trade certain HKEX listed equity index futures (Eligible Narrow-Based Security Index Futures) in accordance with the terms and conditions of an order issued by the SEC in 2009 and subsequent guidance by CFTC staff.
     
     Eligible Narrow-Based Security Index Futures  
     MSCI Indonesia Net Total Return (USD) Index Futures
     MSCI Indonesia (USD) Index Futures
     
     Eligible market participants
     Under the SEC’s 2009 Order, the following market participants may access certain narrow-based security index futures in foreign markets:
     - “qualified institutional buyers” (QIBs) as defined in Rule 144A under the US Securities Act of 1933;
     - persons that are not US persons (non-US persons) under Rule 902 of the Regulation S of the US Securities Act of 1933;
     - SEC-registered brokers or dealers that effect transactions on behalf of QIBs or non-US persons; and
     - banks (as defined in Section 3(a)(6) of the Securities Exchange Act of 1934), acting pursuant to an exception or exemption from the definition of “broker” or “dealer” in Sections 3(a)(4)(B), 3(a)(4)(E), or 3(a)(5)(C) of the Securities Exchange Act of 1934 or the rules thereunder, to effect transactions on behalf of QIBs or non-US persons.
     
     Regulations S
    The transactions in Eligible Narrow-Based Security Index Futures shall be effected in accordance with the requirements of the SEC Regulation S.  Under the SEC Regulation S, there must be no “directed selling efforts” into the US. 
     
     Related Documents
     https://www.sec.gov/rules/exorders/2009/34-60194.pdf
     https://www.cftc.gov/sites/default/files/idc/groups/public/@internationalaffairs/documents/ssproject/fsfpadvisory.pdf
   
B02A24241D934714AD273561037F6D6D Equity Options for US Investors
HKEX has filed a Class No-action Relief to the SEC in order to allow certain US investors (Eligible US Investors) to access certain options (Eligible Options) listed on HKEX’s markets. Under Class No-action Relief, HKEX participants may engage with Eligible Investors for options related services.
B02A24241D934714AD273561037F6D6D Eligible US Investors
Under Class No-action Relief by the US SEC, only eligible broker-dealers and eligible institutions (EBD/EI) can access options in foreign markets. EBD/EI is any entity that meets the following standards:
- it must be a “qualified institutional buyer” as defined in Rule 144A(a)(1) under the US Securities Act of 1933; or an international organisation excluded from the definition of “US person” in Rule 902(k)(2)(vi) of Regulation S under the Securities Act; and
- it must have had prior actual experience with traded options in the U.S. options markets (and, therefore, would have received the disclosure document for US standardized options called for by Rule 9b-1 under the US Securities Exchange Act of 1934 (“Exchange Act”).
B02A24241D934714AD273561037F6D6D Eligible Options
B02A24241D934714AD273561037F6D6D Hang Seng Index Options
B02A24241D934714AD273561037F6D6D Hang Seng China Enterprises Index Options
B02A24241D934714AD273561037F6D6D Mini- Hang Seng Index Options
B02A24241D934714AD273561037F6D6D Mini- Hang Seng China Enterprises Index Options
    B02A24241D934714AD273561037F6D6D Weekly Hang Seng Index Options 
    B02A24241D934714AD273561037F6D6D Weekly Hang Seng China Enterprises Index Options 
    B02A24241D934714AD273561037F6D6D  Stock Options 
B02A24241D934714AD273561037F6D6D HKEX Participants Trading Arrangement with Eligible Investors
B02A24241D934714AD273561037F6D6D Under class no-action relief by US SEC, HKEX participants can offer options to eligible US investors upon complying with the conditions stated in the Class Relief Letter issued by SEC and circulars issued by HKEX. The conditions and procedures are as follows:
- Participants who intend to transact eligible options with one or more eligible US investors are required to notify SEHK/HKFE for record keeping purposes by completing and returning a signed form. (Please refer to the related documents section.)
- Participants are required to obtain, and maintain a record of, representations from eligible US investors before effecting a transaction in eligible options with eligible US investors. (Please refer to the related documents section.)
B02A24241D934714AD273561037F6D6D Related Documents
Stock Exchange of Hong Kong (SEHK)
B02A24241D934714AD273561037F6D6D Circular - US Securities and Exchange Commission Class No-action Relief filed by HKEX (SEHK)
Hong Kong Futures Exchange Limited (HKFE)
B02A24241D934714AD273561037F6D6D Circular - Equity Index Options Familiarization Activities with U.S. Eligible Brokers-Dealers / Eligible Institutions
B02A24241D934714AD273561037F6D6D Circular - US Securities and Exchange Commission Class No-action Relief filed by HKEX(HKFE)
       
Information for Retail Investors Located in the European Economic Area
The PRIIPs Regulation, which came into effect on 1 January 2018, states that a key information document (“KID”) must be provided to retail investors located in the European Economic Area (“EEA”) who are sold a packaged retail and insurance-based investment product (“PRIIP”).
       
 B02A24241D934714AD273561037F6D6D  Key Information Document (KID)
     
  B02A24241D934714AD273561037F6D6D   Derivatives Trading in HKFE
     (Equity Index Futures and Options, Stock Futures, Currency Futures and Options, Interest Rate Futures, Metal and other Commodities Futures)
    B02A24241D934714AD273561037F6D6D   Long Call Option
    B02A24241D934714AD273561037F6D6D  Long Put Option
    B02A24241D934714AD273561037F6D6D  Short Call Option
    B02A24241D934714AD273561037F6D6D Short Put Option
    B02A24241D934714AD273561037F6D6D  Futures Contract
       
  B02A24241D934714AD273561037F6D6D   Derivatives Trading in SEHK
     (Stock Options)
    B02A24241D934714AD273561037F6D6D  Long Call Option
    B02A24241D934714AD273561037F6D6D  Long Put Option
    B02A24241D934714AD273561037F6D6D  Short Call Option
    B02A24241D934714AD273561037F6D6D Short Put Option
       
Information for Investors in Taiwan
Futures Commission Merchants (FCMs) in Taiwan can offer the following products to investors in Taiwan.
     
 B02A24241D934714AD273561037F6D6D    Equity Index Derivatives
   B02A24241D934714AD273561037F6D6D Hang Seng Index Futures
   B02A24241D934714AD273561037F6D6D Hang Seng Index Options
   B02A24241D934714AD273561037F6D6D Mini-Hang Seng Index Futures
   B02A24241D934714AD273561037F6D6D Mini-Hang Seng Index Options
   B02A24241D934714AD273561037F6D6D Hang Seng China Enterprises Index Futures
   B02A24241D934714AD273561037F6D6D Hang Seng China Enterprises Index Options
   B02A24241D934714AD273561037F6D6D Mini-Hang Seng China Enterprises Index Futures 
   B02A24241D934714AD273561037F6D6D Mini-Hang Seng China Enterprises Index Options
   B02A24241D934714AD273561037F6D6D HSCEI Dividend Point Index Futures
   B02A24241D934714AD273561037F6D6D MSCI AC Asia ex Japan Net Total Return Index Futures
   B02A24241D934714AD273561037F6D6D Weekly Hang Seng Index Options 
   B02A24241D934714AD273561037F6D6D Weekly Hang Seng China Enterprises Index Options
       
 B02A24241D934714AD273561037F6D6D Stock Futures
   B02A24241D934714AD273561037F6D6D  6 stock futures
       
 B02A24241D934714AD273561037F6D6D  Stock Options
     56 stock options classes
       
 B02A24241D934714AD273561037F6D6D Commodities
   B02A24241D934714AD273561037F6D6D USD Gold Futures

Updated 04 Jan 2018