USD London Aluminium Mini Futures

USD London Aluminium Mini Futures is introduced to provide additional trading opportunities for users who have exposure in USD-denominated aluminium in the Asian time zone, and to offer new investment instruments for both retail and institutional investors who would like to gain access to its cash-settled features and relatively small contract sizes.

()

- (-)

: -

: -

: -

-				-			-

Contract Specification

Contract	USD London Aluminium Mini Futures
Underlying	High Grade Primary Aluminium as defined in the rules and regulations of The London Metal Exchange from time to time
HKATS Code	LUA
Contract Size	5 tonnes
Trading Currency	USD
Contract Months	Spot Month and the next eleven calendar months
Minimum Fluctuation	USD 0.50 per tonne
Trading Hours¹ (Hong Kong Time)	9:00 a.m. to 4:30 p.m. (day trading session) and 5:15 p.m. to 3:00 a.m. the next morning (after-hours trading session)
Trading Hours on Last Trading Day (Hong Kong Time)	9:00 a.m. to 4:30 p.m. (day trading session) and 5:15 p.m. to 8:00 p.m. (after-hours trading session during British Summer Time) 5:15 p.m. to 9:00 p.m. (after-hours trading session outside British Summer Time)
Last Trading Day (LTD)	The LTD determined by the LME for its Aluminium Futures (i.e. Usually two business days before the third Wednesday of the Spot Month). If it is not a Trading Day, the LTD shall be the immediately preceding Trading Day
Final Settlement Price	Shall be a whole number, determined by the Clearing House, and shall be the Official Settlement Price determined and published by the LME for its Aluminium Futures, two London Business Days before the third Wednesday of the Spot Month.
Settlement Type	Cash-settled
Holiday Schedule	Follow HKFE holiday schedule
Exchange Fee²(per contract per side)	USD 0.50
Settlement Fee (per lot)	USD 0.20
Commission Levy	USD 0.07
Investor Compensation Levy³	The collection of Investor Compensation Levy is currently suspended and no person is required to pay since 2005.
Commission Rate	Negotiable
Calendar spreads	Cover Spot Month and the nearest 11 serial month

Notes :

1. There is no trading after 12:30 p.m. on the eves of Christmas, New Year and Lunar New Year. The trading hours on those three days shall be 9:00 a.m. to 12:30 p.m. There is no after-hours trading session if it is a bank holiday in the United Kingdom, the United States and the People’s Republic of China

2. The amount indicated above is subject to change by the Exchange from time to time

3. Investor Compensation Levy
- If the SFC is to publish a termination of exemption notice, the effective date of the reinstatement of the ICL, if any, shall not be earlier than 2 months after the date of such publication.
- EPs are reminded to take all necessary actions to prepare for the ICL calculation and payment of ICL via HKEX in case the ICL is reinstated by the SFC, including enhancing their HKATS Application Programming Interface, back office systems, relevant applications and operational facilities.

Margin Table

Derivatives Market Access Codes

Vendor Name	Access Code
AASTOCKS.com Limited	221495
ACTIV Financial Systems, Inc.	LUA/<yy><m>.HF
ATPlatform Technology Limited	LUA
Bloomberg Finance L.P.	YALA Comdty
Colt Technology Services Limited	LUAmy
CQG, Inc.	LUA
Fidessa Trading UK Limited	LUA_Fmy.HF
ICE Data Connectivity & Feeds, Inc.	F:LUA\MYYDD
Infocast Limited	LUA
N2N-AFE (Hong Kong) Limited	870828
QuotePower International Limited	P11230
Refinitiv Limited	0#HLUA:
SIX Financial Information Ltd.	LUAmy
Telequote Data International Ltd.	LUAmy
Tele-Trend Ltd.	YAFC, YAmyy
Webstock Information Systems Co., Ltd.	LUA
Zhengzhou Esunny Information Technology Co., Ltd.	LUA

Market Maker Obligations and Incentives

Obligations of LP

LP will be required to meet at least the following obligations:

Obligations	USD London Metal Mini Futures
LP Type	2
CQ or QR	CQ
Contract Months	Any 3 of the followings: M, M+1, M+2 or M+3
Contracts	Copper	Aluminium	Zinc
Max. Bid / Offer Spread	M+2
	6 ticks (~3 basis points)¹	3 ticks (~4 basis points)¹	4 ticks (~5 basis points)¹
	Other Months
	8 ticks (~4 basis points)¹	4 ticks (~6 basis points)¹	4 ticks (~5 basis points)¹
Quote Size (contracts)	10	10	10
% of Trading Hours	70% (T or T+1)

Notes:

1. Basis points are calculated and rounded based on LME Official Settlement Price on 31 March 2022.

2. All basis points are listed for reference only. LP performance will be measured on ticks.

3. Effective Dates from 3 Jan 2022 (T Session) to 30 December 2022 (T Session) (both dates inclusive).

For more details of the market maker obligations and incentives, please refer to the HKEX website at https://www.hkex.com.hk/-/media/HKEX-Market/Services/Circulars-and-Notices/Participant-and-Members-Circulars/HKFE/2022/MKS_GCMD_002_22_EN.pdf

Additional Information on Cash Incentive Liquidity Providers

Market	Aggregate Market Share in October 2022^
USD London Aluminium Mini Futures	60.8%
USD London Copper Mini Futures	63.5%
USD London Zinc Mini Futures	72.8%

^aggregate market share of liquidity providers under the Cash Incentive Program in October 2022 (information last updated on 16 November 2022)