Sector Index Futures

Introduction

Sector index futures are low cost and capital efficient products for investors to capture sector specific trading opportunities and manage their investment risk exposure more precisely.

What are Sector Index Futures

HKEX’s sector index futures market covers three major business sectors listed on the SEHK, including:

Hang Seng Mainland Oil & Gas Index (HSMOGI)
Hang Seng Mainland Banks Index (HSMBI)
Hang Seng Mainland Properties Index (HSMPI)

Key Features of Sector Indices

Constituents are selected from pure business segment to reflect their particular business and regulatory environments
Constituents are industry leaders limited to the top 10 and subject to liquidity screening
Weighting of each constituent is limited to 15 percent to avoid over-concentration

Why Sector Index Futures

Responsive to sectorial news and policy changes
Diversify firm-specific risks
High leverage and capital efficient
No stamp duty and other financing costs
Short sellable without stock borrowing
Long / short strategies made possible: market vs sector, sector vs sector and sector vs single stock futures

Sector Index Futures
Hang Seng Mainland Oil & Gas Index (HSMOGI)
Hang Seng Mainland Banks Index (HSMBI)
Hang Seng Mainland Properties Index (HSMPI)

Updated 28 Sep 2020

Contract Summary

Item	Contract Terms
Underlying Index	Hang Seng Mainland Oil & Gas Index Hang Seng Mainland Banks Index Hang Seng Mainland Properties Index
HKATS Code	Hang Seng Mainland Oil & Gas Index MOI Hang Seng Mainland Banks Index MBI Hang Seng Mainland Properties Index MPI
Contract Multiplier	HK$50
Minimum Fluctuation	0.5 Index Point
Contract Months	Spot, next calendar month & next two calendar quarter months
Trading Hours	9:15 am - 12:00 noon, 1:00 pm - 4:30 pm (Expiring contract month closes at 4:00 pm on the Last Trading Day)
Last Trading Day	The Business Day immediately preceding the last Business Day of the Contract Month
Final Settlement Price	The average value of the sector index taken at (i) five (5) minute intervals from five (5) minutes after the start of the trading session on the Last Trading Day 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$0.54 Commission Rate Negotiable

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
	AKN	BNP	CFT	CTC	CTD	DAI	FLW	GHF	IBG	IMC	ISS	KGI	LQC	MAK	MPF	MVN	NHT	OPT	PHL	SGS	SQH	YKR
Hang Seng China Enterprises Index Futures Options	PMD				PMD					CMD					PMD						CMD
Hang Seng Index Futures Options	PMD				PMD					CMD					PMD						CMD
Hang Seng Index Options	PMD	CMD		PMD	PMD				CMD	CMW	CMW		CMD	SMW	PMD	SMW	PMD	SMW		CMW		PMD
Hang Seng Tech Index Futures															CLD			CLD
Hang Seng Tech Index Options	CLD								CLD	CLD					CLD		CLD	CLD
HHI Options	PMD	CMD		PMD	PMD				CMD	CMW			CMD	SMW	PMD	SMW	PMD	SMW		CMW		PMD
HSCEI Dividend Point Index Futures		CMD
HSI Dividend Point Index Futures		CMD
MCH Options	CMD				CMD				CMD	CMW					CMD	CMW	CMD	CMW				CMD
MHI Options	CMD				CMD				CMD	CMW	CMW		CMD		CMD	CMW	CMD	CMW		CMW		CMD
MSCI AC Asia ex Japan Net Total Return Index Futures							CLD								CLN
MSCI China A 50 Connect (USD) Index Futures			CLN				CLD	CLW							CLW			CLD		CLD
MSCI China Free Net Total Return (USD) Index Futures							CLD								CLN
MSCI EM Asia Net Total Return (USD) Index Futures							CLD								CLN
MSCI Emerging Markets (USD) Index Futures							CLD
MSCI Emerging Markets Net Total Return (USD) Index Futures							CLD								CLN
MSCI Hong Kong Net Total Return (USD) Index Futures							CLD
MSCI India Net Total Return (USD) Index Futures							CLD								CLN
MSCI Indonesia Net Total Return (USD) Index Futures							CLD								CLN
MSCI Japan (JPY) Index Futures							CLD
MSCI Japan Net Total Return (JPY) Index Futures							CLD
MSCI Japan Net Total Return (USD) Index Futures							CLD								CLN
MSCI Malaysia Net Total Return (USD) Index Futures							CLD
MSCI Philippines Net Total Return (USD) Index Futures							CLD
MSCI Singapore Free (SGD) Index Futures							CLD								CLN
MSCI Taiwan (USD) Index Futures			CLD			CLD		CLW				CLD			CLD		CLD		CLN	CLD
MSCI Taiwan 25/50 (USD) Index Futures							CLD								CLN
MSCI Taiwan Net Total Return (USD) Index Futures							CLD								CLN
MSCI Thailand Net Total Return (USD) Index Futures							CLD
Weekly HHI Options	CMD									CMW							CMD	CMW		CMW
Weekly HSI Options	CMD									CMW							CMD	CMW		CMW

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

Updated 28 Sep 2020

Market Maker 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