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).
Below is the list of Short Code for EP of Liquidity Provider, PMM, CQMM and QRMM:
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)
Liquidity Providers Incentives
|
Market Making Obligation
|
Provision of
Continuous Quotes (CQ)
|
Response to
Quote Requests (QR)
|
|
Assigned Contract
|
Not less than 2 contract months
[i.e. Spot month and the next calendar month]
|
All contract months
|
|
Trading Requirement
|
Provision of CQ for not less than
70% of the trading hours in each calendar month
|
Response to not less than 70%
of the QR in each calendar month
|
|
Maximum Time Limit for Responding to QR
|
N/A
|
Response to a QR within 20 seconds of the QR
|
| Minimum Display Time |
Not fewer than 10 seconds, unless a change in the level of the underlying index occurs during the 10 seconds display period, in which case, market makers may change their quotes |
| Maximum Bid/Offer Spread |
|
Hang Seng Mainland Oil & Gas Index Futures
|
4Index points or 0.2% of bid price, whichever is higher
|
|
Hang Seng Mainland Banks Index Futures
|
6 Index points or 0.2% of bid price, whichever is higher
|
|
Hang Seng Mainland Properties Index Futures
|
7Index points or 0.2% of bid price, whichever is higher
|
|
Hang Seng Mainland Healthcare Index Futures
|
8Index points or 0.2% of bid price, whichever is higher
|
|
Hang Seng IT Hardware Index Futures
|
6 Index points or 0.2% of bid price, whichever is higher
|
|
Hang Seng Software & Services IndexFutures
|
11Index points or 0.2% of bid price, whichever is higher
|
|
CES Gaming Top 10 Index Futures
|
13Index points or 0.2% of bid price, whichever is higher
|
|
| Minimum Quote Size |
Not fewer than 5 contracts |
Market Maker Incentives for Sector Index Futures
|
Product
|
Market Maker
Fee (HK$)
|
Market Maker in Other Stock Index
Products with same underlying Index
Fee (HK$)
|
Standard
Exchange
Fee (HK$)
|
|
Sector Index Futures
|
0.40
|
n.a.
|
2.00
|
|
Liquidity Provider Obligations
|
Provision of Continuous Quotes (CQ)
|
|
Assigned Contract
|
Spot month and next month
|
|
Maximum Bid/ Offer Spread
|
-
CES Gaming Top 10 Index Futures
13 index points or 0.15% of bid price, whichever is higher (Type A)
-
Hang Seng Mainland Banks Index Futures
6 Index points or 0.20% of bid price, whichever is higher (Type A)
4 Index points or 0.15% of bid price, whichever is higher (Type B)
-
Hang Seng Mainland Properties Index Futures
7 Index points or 0.20% of bid price, whichever is higher (Type A)
3 Index points or 0.15% of bid price, whichever is higher (Type B)
-
Hang Seng Mainland Oil & Gas Index Futures
4 Index points or 0.20% of bid price, whichever is higher (Type A)
4 Index points or 0.15% of bid price, whichever is higher (Type B)
-
Hang Seng IT Hardware Index Futures
6 Index points or 0.20% of bid price, whichever is higher (Type A)
-
Hang Seng Software & Service Index Futures
11 Index points or 0.20% of bid price, whichever is higher (Type A)
Hang Seng Mainland Healthcare Index Futures
8 Index points or 0.20% of bid price, whichever is higher (Type A)
|
|
Minimum Quote Size
|
5 Contracts
|
|
Minimum % of Trading Hours Coverage
|
70% of trading hours in a month (Type A)
80% of trading hours in a month (Type B)
|
Liquidity Providers Incentives
- Cross-product trading fee rebate (Type A)
- Cross-product trading fee rebate, market date fee rebate, hosting services fee rebate and OAPI sub- license fee wavier (Type B)
