HONG KONG: HKEX to Include Equity Index Options in its After-Hours Derivatives Trading

Wednesday February 7 2018

On 7^th February 2018, the Hong Kong Exchanges and Clearing Limited (HKEX) announced that it will proceed with its plan to include its most actively traded equity index options – Hang Seng Index (HSI) Options, Hang Seng China Enterprises Index Options (HSCEI) Options, Mini-HSI Options and Mini- HSCEI Options (equity index options) –  in the T+1 Session (after hours trading) of its derivatives (futures and options) market.

 The changes will be made after a readiness test scheduled for the second quarter of 2018.  They are expected to be introduced before the end of the second quarter.  The effective date will be announced later.

HKEX introduced its first after hours trading enhancement on 6^th  November 2017, when it extended after hours trading of its four most actively traded equity index futures contracts by moving the T+1 Session close from 11:45 pm to 1 am the following day.

Since the rollout of the enhancement, the total after hours trading volume of equity index futures has increased 80 per cent compared to volume before the extension.

Following the inclusion of Equity Index options, HKEX will initiate two further measures which are aimed at enhancing the After Hours Derivatives Trading:

•  The first is the Inclusion of equity index options and a trading halt mechanism which is only applicable to options in the T+1 Session after hours trading enhancement plan.
• The second, also subject to regulatory approval, will extend the trading of selected products from 1:00 am to 3:00 am. This will create an additional T+1 Session and  will adjust the T+1 Session Cutoff Time (the deadline for system input of post-trade information after the T+1 Session) to reflect the session’s new closing time.

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