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
	BNP	CFT	CTD	FLW	GHF	IBG	IMC	KGI	MPF	MVN	NHT	OPT	SGS	SQH	YKR
Hang Seng China Enterprises Index Futures Options			PMD				PMD		PMD	PMD	PMD	PMD		CMD
Hang Seng Index Futures Options			PMD				CMD		PMD	PMD	PMD	PMD		CMD
Hang Seng Index Options	CMD		PMD			CMD	CMW		PMD	SMW	PMD	SMW	CMW	CMD	PMD
Hang Seng Tech Index Futures									PMD		PMD	PMD		CMD
Hang Seng TECH Index Futures Options							CMD		PMD		PMD	PMD		CMD
Hang Seng Tech Index Options						CBD	CBD		PMD		PMD	PMD
HHI Options	CMD		PMD			CMD	SMW		PMD	SMW	PMD	SMW	CMW	CMD	PMD
HSCEI Dividend Point Index Futures	CMD
HSI Dividend Point Index Futures	CMD
MCH Options			CMD			CMD	CMW		CMD	CMW	CMD	CMW			CMD
MHI Options			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					CLW			CLD	CLW
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
MSCI Emerging Markets Net Total Return (USD) Index Futures				CLD					CLN
MSCI Hong Kong Net Total Return (USD) Index Futures				CLD
MSCI India (USD) Index Futures		CLD		CLD	CLD			CLD	CLD				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			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	CMD
Weekly HSI Options	CMD		CMD				CMW		CMD		CMD	CMW	CMW	CMD

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