Mini-Hang Seng China Enterprises Index Futures

Mini-Hang Seng China Enterprises Index Futures

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 would meet the needs of customers who have a smaller risk capital.

The underlying index of Mini-Hang Seng China Enterprises Index futures is the Hang Seng China Enterprises Index (HSCEI), the same as the standard HSCEI Index futures 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 contracts inherit the advantages of the larger sized HSCEI Index futures 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
Comission levy will be exempted for the first six months of trading of Mini-HSCEI Index futures. No stamp duty is required for trading futures and options product.

Margin offset
The client and clearing house margin levels for HSCEI futures contract will be set at one-fifth of the respective margins for the HSCEI futures contract. Margin offset will be applicable to the product group containing HSCEI contracts in net margined accounts, with delta/spread between the Mini-HSCEI and HSCEI contracts set at a ratio of 5 to 1.

Fungibility
The Mini-HSCEI futures contract and the HSCEI futures contract are fungible in that opposite positions in these two contracts can be offset at the ratio of one HSCEI Index futures contract against five Mini-HSCEI Index futures 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 Futures

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
Pre-Market Opening Period	8:45 am -9:15 am & 12:30 pm - 1:00 pm
Trading Hours	9:15 am - 12:00 noon, 1:00 pm - 4:30 pm & 5:15 pm - 3:00 am (Expiring contract month closes at 4:00 pm on the Last Trading Day)
Last Trading Day	The Second Last Trading Day of the Contract Month
Final Settlement Price	The average of quotations 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 Last Trading Day.
Transaction Costs	Exchange Fee HK$2.00 Commission Levy HK$0.10 Commission Rate Negotiable

Please visit “Rules, Regulations and Procedures of the Futures Exchange” of “Trading Rules” under “Rules and Regulations” of the HKEx website for full contract specifications.

Margin Table

Trading Fees and Commission

Mini-Hang Seng China Enterprises Index Futures

Exchange Fee: HK$2.00 per contract per side

Commission Levy: HK$0.10 per contract per side

Investor Compensation Levy*: HK$0.00 per contract per side

Total: HK$2.10 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	FLW	GHF	IBG	IMC	KGI	MPF	NHT	OPT	ORN	SGS	SQH	YKR
Hang Seng China Enterprises Index Futures Options			PMD				PMD		PMD	PMD	PMD			CMD
Hang Seng Index Futures Options			PMD				PMD		PMD	PMD	PMD			CMD
Hang Seng Index Options	CMD		PMD			CMD	SMW		SMD	PMD	SMW		CMW	CMD	PMD
Hang Seng TECH Index Futures Options							CMD		PMD	PMD	PMD			CMD
Hang Seng Tech Index Options						CMD	CMD		PMD	PMD	PMD			CMD
HHI Options	CMD		PMD			CMD	SMW		SMD	PMD	SMW		CMW	CMD	PMD
HSCEI Dividend Point Index Futures	CMD
HSI Dividend Point Index Futures	CMD
MCH Options			CMD			CMD	CMW		CMD	CMD	CMW				CMD
MHI Options			CMD			CMD	CMW		CMD	CMD	CMW		CMW		CMD
MSCI AC Asia ex Japan Net Total Return Index Futures				CLD					CLW
MSCI China A 50 Connect (USD) Index Futures		CLW		CLD	CLD			CLW	CLW			CLD	CLW
MSCI China Net Total Return (USD) Index Futures		CLD							CLN
MSCI EM Asia Net Total Return (USD) Index Futures				CLD					CLW
MSCI Emerging Markets Net Total Return (USD) Index Futures				CLD					CLD
MSCI Hong Kong Net Total Return (USD) Index Futures				CLD					CLD
MSCI India (USD) Index Futures		CLW						CLW
MSCI India Net Total Return (USD) Index Futures				CLD					CLW
MSCI Indonesia Net Total Return (USD) Index Futures				CLD					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					CLD
MSCI Taiwan (USD) Index Futures					CLW				CLD				CLD
MSCI Taiwan 25/50 (USD) Index Futures				CLD
MSCI Taiwan Net Total Return (USD) Index Futures				CLD					CLW
MSCI Thailand Net Total Return (USD) Index Futures				CLD					CLD
Weekly HHI Options			CMD				CMW		CMD	CMD	CMW		CMW	CMD
Weekly HSI Options	CMD		CMD				CMW		CMD	CMD	CMW		CMW	CMD

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