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	CHI	CTC	CTD	FLW	GHF	IBG	IMC	ISS	KGI	LQC	MAK	MPF	MVN	NHT	OPT	PHL	SGS	SQH	YKR	YNT
Hang Seng Index Options	P	*			P	P			*	#	#		*	P#	P	P #	P	P #		#	*	P
Weekly Hang Seng Index Options	*									#	#					*	*	#
Mini-Hang Seng Index Options	*					*			*	#	#		*		*	#	*	#		#		*
Hang Seng China Enterprises Index Options	P	*			P	P			*	#			*	P#	P #	P #	P	P #		#	*	P
Weekly Hang Seng China Enterprises Index Options	*									#						*	*	#
Mini-Hang Seng China Enterprises Index Options	*					*			*	#					*	#	*	#				*
HSI Dividend Point Index Futures		*
HSCEI Dividend Point Index Futures		*
Hang Seng TECH Index Futures										*					*		*					*
Hang Seng TECH Index Options									LP	LP					LP		LP	LP				LP
HSI Volatility Index Futures																	LP
CES China 120 Index Futures							LD
MSCI AC Asia ex Japan Net Total Return Index (USD)							LB
MSCI Australia Net Total Return (USD) Index Futures							LD								LN
MSCI China Free (USD) Index Futures							LD								LN
MSCI China Free Net Total Return (USD) Index Futures			LD				LD	LD							LN
MSCI EM Asia ex China Net Total Return (USD) Index Futures
MSCI EM Asia ex Korea Net Total Return (USD) Index Futures
MSCI EM EMEA Net Total Return (USD) Index Futures
MSCI EM ex China Net Total Return (USD) Index Futures
MSCI EM ex Korea Net Total Return (USD) Index Futures
MSCI EM LatAm Net Total Return (USD) Index Futures
MSCI EM Asia Net Total Return (USD) Index Futures							LD	LD							LN					LD
MSCI Emerging Markets (USD) Index Futures							LD
MSCI Emerging Markets Net Total Return (USD) Index Futures							LD								LN
MSCI Hong Kong Net Total Return (USD) Index Futures							LD
MSCI India (USD) Index Futures							LD								LN
MSCI India Net Total Return (USD) Index Futures			LD				LD	LD							LN
MSCI Indonesia (USD) Index Futures							LD								LN
MSCI Indonesia Net Total Return (USD) Index Futures							LD								LN
MSCI Japan (JPY) Index Futures							LD
MSCI Japan Net Total Return (JPY) Index Futures							LD
MSCI Japan Net Total Return (USD) Index Futures							LD								LN
MSCI Malaysia (USD) Index Futures							LD
MSCI Malaysia Net Total Return (USD) Index Futures							LD
MSCI New Zealand Net Total Return (USD) Index Futures
MSCI Pacific ex Japan Net Total Return (USD) Index Futures
MSCI Pacific Net Total Return (USD) Index Futures
MSCI Philippines (USD) Index Futures							LD
MSCI Philippines Net Total Return (USD) Index Futures							LD
MSCI Singapore Free (SGD) Index Futures							LD					LD			LN					LD
MSCI Singapore Free Net Total Return (USD) Index Futures
MSCI Singapore Net Total Return (USD) Index Futures							LD								LN
MSCI Taiwan (USD) Index Futures			LD				LD	LD				LD			LN				LD	LD			LD
MSCI Taiwan (USD) Index Futures Calendar Spread				LD				LD									LD		LD
MSCI Taiwan 25/50 (USD) Index Futures			LD				LD	LD							LN				LD
MSCI Taiwan 25/50 (USD) Index Futures Calendar Spread			LD					LD											LD
MSCI Taiwan 25/50 Net Total Return (USD) Index Futures							LD								LN
MSCI Taiwan Net Total Return (USD) Index Futures							LD								LN
MSCI Thailand (USD) Index Futures							LD
MSCI Thailand Net Total Return (USD) Index Futures							LD
MSCI Vietnam (USD) Index Futures							LD
MSCI Vietnam Net Total Return (USD) Index Futures							LD

LD - Denotes Liquidity Provider (T Sessions)
LN - Denotes Liquidity Provider (T+1 Sessions)

LB - Denotes Liquidity Provider (T and T+1 Sessions)
P - Denotes PMM
* - Denotes CQMM (T Session)
# - Denotes CQMM (T and T+1 Sessions)
√ - Denotes QRMM (T Session)
@ - Denotes QRMM (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