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 the major business sector listed on the SEHK, including:

Hang Seng Mainland Banks Index (HSMBI)

Key Features of Sector Index

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 Banks Index (HSMBI)

Updated 29 Sep 2022

Contract Summary

Item	Contract Terms
Underlying Index	Hang Seng Mainland Banks Index
HKATS Code	MBI
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 second last Trading 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	CTD	DAI	FLW	GHF	IBG	IMC	KGI	MPF	MVN	NHT	OPT	PHL	SGS	SQH	YKR
Hang Seng China Enterprises Index Futures Options	CMD			PMD					CMD		PMD	PMD	PMD	PMD			CMD
Hang Seng Index Futures Options	CMD			PMD					CMD		PMD	PMD	PMD	PMD			CMD
Hang Seng Index Options	PMD	CMD		PMD				CMD	CMW		PMD	SMW	PMD	SMW		CMW	CMD	PMD
Hang Seng Tech Index Futures																	CMD
Hang Seng TECH Index Futures Options											PMD		PMD	PMD			CMD
Hang Seng Tech Index Options								CLD	CLD		PMD		PMD	PMD
HHI Options	PMD	CMD		PMD				CMD	CMW		PMD	SMW	PMD	SMW		CMW	CMD	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		CMD	CMW	CMD	CMW		CMW		CMD
MSCI AC Asia ex Japan Net Total Return Index Futures						CLD					CLN
MSCI China (USD) Index Futures						CLD
MSCI China A 50 Connect (USD) Index Futures			CLW			CLD	CLN				CLW			CLD	CLD	CLD
MSCI China Free Net Total Return (USD) Index Futures											CLN
MSCI China 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
MSCI Japan Net Total Return (JPY) Index Futures
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			CLN		CLD		CLN			CLD	CLW		CLD			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		CMD	CMW		CMW
Weekly HSI Options	CMD								CMW		CMD		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 29 Sep 2022

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