Trading Fee Waivers for Market Maker Transactions in ETPs
Starting from 31 May 2021, new trading fee waiver rates will be applied to different ETF categories for market maker transactions, applicable to both Securities Market Makers and Designated Specialists, as set out below:
- Trading fee waiver in relation to market maker transactions on ETFs that invest into domestic equity securities,with trailing 12-month average daily turnover (ADT) not less than HK$300 million will be 25%.
- Trading fee waiver in relation to market maker transactions on ETFs that invest into non-domestic equity securities and L&I Products, with trailing 12-month ADT not less than HK$300 million will be 75%.
- Trading fee waiver in relation to market maker transactions on other ETPs will be 100%.
Please refer to Exchange Circular Ref No. ETP/001/21. The list of ETPs and the applicable rate of trading fee exemption are also available on HKEX website and will be reviewed on a quarterly basis and updated accordingly.
Reduced Settlement Fee Rates For Market Maker Transactions in ETPs
Starting from 30 June 2025, a reduced settlement fee rate will be applied for market maker transactions, applicable to both Securities Market Makers (SMMs) and Designated Specialists (DSs), as set out below:
- An ad valorem rate of 0.0020% (0.20bps) for each market making Exchange Trade or manual trade undertaken by ETP Market Makers
- An ad valorem rate of 0.0010% (0.10 bps) for each market making crossed Exchange Trade1 or manual crossed trade undertaken by ETP Market Makers.
Please refer to Exchange Circular Ref No. PT/SCS/CCASS/022/2025.
Note 1: Under the definition of the HKSCC Operational Procedures, “Crossed Exchange Trade” means a trade where the buy and sell of an Exchange Trade is handled by the same Exchange Participant.
Learn more about Securities Market Maker and Designated Specialist
Securities Market Makers (SMMs) and Designated Specialists (DSs), collectively called market makers provide liquidity to Hong Kong ETP market.
Here are the details of SMM and DS:
For more information about becoming a market maker for an ETP listed on HKEX and our market making programme, please refer to our infosheet or email ETFs@hkex.com.hk or LIProducts@hkex.com.hk.