Hong Kong Exchanges and Clearing Limited (HKEX) plans to launch the Weekly Hang Seng TECH Index Options on September 2, subject to regulatory approval.
Hang Seng TECH Index Weekly Options are weekly expiring options, supporting investors’ needs to manage their positions in response to short-term risks and specific events. There will be two groups of weekly contracts, one week and the following week, offered.
HKEX will apply a market-wide 50 percent trading fee discount to new contracts until further notice. The Commission levy will also be abolished for the first six months from the start of the negotiation.
HKEX successfully launched Weekly Hang Seng Index Options and Weekly Hang Seng China Enterprises Index Options in 2019, with average daily volume (ADV) increasing from around 6,000 contracts in 2020 to over 19,000 contracts so far this year.
The launch of the Weekly Hang Seng TECH Index Options and the planned launch of weekly stock options later this year further enrich HKEX’s suite of derivative products and support the offering of short-dated options.
HKEX’s suite of Hang Seng TECH Index derivative products has become one of the most actively traded products since the launch of futures in 2020, with ADV increasing from around 14,000 contracts in 2021 to over 116,000 contracts so far this year. The Hang Seng TECH Index Options also hit a daily volume record of 31,577 contracts on May 3, 2024.
The HKEX derivatives market hit a record ADV of 1.35 million contracts in 2023, up 4 percent from last year. That momentum continued into 2024, with ADV of 1.56 million contracts as of May 31, up 13 percent from a year earlier.