Market Making/Liquidity Providing Obligations and Incentives

Introduction

HKEX’s derivatives market has both Market Maker (MM) Program and / or Liquidity Provider (LP) Program for different derivatives products. The MM obligations and MM incentives under the MM Program for futures contracts and index options contracts are set out in the HKFE Rules. The MM obligations and MM incentives under the MM Program for stock options contracts are set out in the Options Trading Rules of the Stock Exchange. LP Program is a commercial arrangement for the Exchange to appoint LPs to provide liquidity for new products, which require more flexibility in terms of LP obligations and LP incentives and are not stipulated in the exchange rules and procedures.

The derivatives products with MM Program and / or LP Program are as follows:

Product Type	Contract	MM Program	LP Program
Futures Contracts	Stock Index Futures	HSI Volatility Index Futures HSI Dividend Point Index Futures HSCEI Dividend Point Index Futures Hang Seng Mainland Oil & Gas Index Futures Hang Seng Mainland Banks Index Futures Hang Seng Mainland Properties Index Futures Hang Seng Index (Gross Total Return) Index Futures Hang Seng Index (Net Total Return) Index Futures Hang Seng China Enterprises Index (Gross Total Return Index) Futures Hang Seng China Enterprises Index (Net Total Return Index) Futures	Hang Seng TECH Index Futures and Options MSCI Asia ex Japan Index Futures MSCI Asia ex Japan Index Futures Calendar Spread MSCI Taiwan (USD) Index Futures MSCI Taiwan Net Total Return (USD) Index Futures MSCI Taiwan Net Total Return (USD) Index Futures Calendar Spread MSCI Japan Net Total Return (USD) Index Futures MSCI Japan Net Total Return (USD) Index Futures Calendar Spread MSCI India Net Total Return (USD) Index Futures MSCI India Net Total Return (USD) Index Futures Calendar Spread MSCI China Free Net Total Return (USD) Index Futures MSCI China Free Net Total Return (USD) Index Futures Calendar Spread MSCI Indonesia Net Total Return (USD) Index Futures MSCI Indonesia Net Total Return (USD) Index Futures Calendar Spread MSCI Thailand Net Total Return (USD) Index Futures MSCI Thailand Net Total Return (USD) Index Futures Calendar Spread MSCI Malaysia Net Total Return (USD) Index Futures MSCI EM Asia Net Total Return (USD) Index Futures MSCI EM Asia Net Total Return (USD) Index Futures Calendar Spread MSCI Hong Kong Net Total Return (USD) Index Futures MSCI Philippines Net Total Return (USD) Index Futures MSCI Emerging Markets Net Total Return (USD) Index Futures MSCI Emerging Market Net Total Return (USD) Index Futures Calendar Spread MSCI Emerging Markets (USD) Index Futures MSCI Emerging Markets (USD) Index Futures Calendar Spread MSCI Taiwan 25/50 (USD) Index Futures MSCI Taiwan 25/50 (USD) Index Futures Calendar Spread MSCI Singapore Free (SGD) Index Futures MSCI Japan (JPY) Index Futures MSCI Japan Net Total Return (JPY) Index Futures MSCI Japan Net Total Return (JPY) Index Futures Calendar Spread MSCI Taiwan (USD) Index Futures Calendar Spread MSCI Taiwan 25/50 (USD) Index Futures Calendar Spread MSCI China (USD) Index Futures MSCI China Net Total Return (USD) Index Futures MSCI China Net Total Return (USD) Index Futures Calendar Spread Block Trade Participant Program
	Stock Futures	Single Stock Futures	Single Stock Futures
	Currency Futures	USD/CNH Futures EUR/CNH Futures JPY/CNH Futures AUD/CNH Futures CNH/USD Futures	USD/CNH Futures EUR/CNH Futures JPY/CNH Futures AUD/CNH Futures CNH/USD Futures INR/USD Futures INR/CNH Futures
	Interest Rate Futures	1-month HIBOR Futures 3-month HIBOR Futures	N/A
	Commodity Futures	N/A	USD London Aluminum Mini Futures USD London Zinc Mini Futures USD London Copper Mini Futures USD Gold Futures USD Silver Futures
Option Contracts	Stock Index Options	Hang Seng Index (HSI) Options Hang Seng Index Futures Options Weekly Hang Seng Index (WHSI) Options Mini-Hang Seng Index (Mini-HSI)Options Hang Seng China Enterprises Index (HSCEI) Options Hang Seng China Enterprises Index Futures Options Weekly Hang Seng China Enterprises Index (WHSCEI) Options Mini-Hang Seng China Enterprises Index (Mini-HSCEI)Options	N/A
	Stock Options	Single Stock Options	N/A
	Currency Options	N/A	USD/CNH Options

Quota for Liquidity Providers on HKFE products

Contracts	Tier	Session	Total Quota	Remaining Quota
Basket of MSCI Index Futures: T Session: 17 MSCI Index Futures T+1 Session: 10 MSCI Index Futures Calendar Spread: 11 MSCI Index Futures	1	T , T+1 & Calendar Spread	1	0
MSCI Taiwan (USD) Index Futures	2	T	5	0
MSCI Taiwan (USD) Index Futures	2	T+1	3	0
MSCI Taiwan (USD) Index Futures - Calendar Spread	2	T	3	0
HS TECH Index Futures	N/A	T	Nil	N/A
HS TECH Index Options	2	T	Nil	N/A

Eligibility

Product Type	MM	LP
HKFE Futures Contracts and Option Contracts	HKFE Exchange Participant (EP), or Corporate entity as client of EP must has an association to the EP and also must meet at least one of the requirements: i) be a regulated entity by the Securities and Futures Commission (SFC) to deal in securities or futures contracts, except as an introducing agent ; or licensed for similar activity by an overseas authority having a Memorandum of Understanding with SFC; Ii) be a licensed bank; Iii) have a credit rating of A- or above (S&P) or A3 or above (Moody’s); or iv) have a minimum paid-up capital of HK$50 mil. and minimum shareholder funds of HK$100 mil.	HKFE Exchange Participant or the client of the Exchange Participant
SEHK Stock Options	Option Trading Exchange Participant (Affiliates of Option Trading Exchange Participant can be stock options Market Maker via the Option Trading Exchange Participant as its agent)	N/A

For the List of Market Makers/ Liquidity Provider

Please refer the hyperlink below:

https://www.hkex.com.hk/Products/Listed-Derivatives/Market-Maker-Program/List-of-Market-Makers_Liquidity-Providers?sc_lang=en

LP and market making obligations and incentives

The following tables summarise the market making obligations and incentives in futures and options contracts:

Stock Index Futures (Except Sector Index Futures, Dividend Point Index Futures ,Volatility Index Futures and HSI and HSCEI Total Return Index Futures, please refer the tables below for the requirements)

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	Not greater than 15 minimum fluctuations
Minimum Quote Size	Not fewer than 5 contracts

Sector Index Futures

Market Maker Obligations

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	4 Index 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	7 Index points or 0.2% of bid price, whichever is higher

Minimum Quote Size

Not fewer than 5 contracts

Dividend Index Point Futures

Market Making Obligation	Provision of Continuous Quotes (CQ)	Response to Quote Requests (QR)
Assigned Contract	All five yearly contracts
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	30.00 points or 10% of bid price, whichever is higher
Minimum Quote Size	50 contracts

HSI Volatility Index Futures

Market Making Obligation	Provision of Continuous Quotes (CQ)	Response to Quote Requests (QR)
Assigned Contract	All contract months (Spot month and the next two calendar 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	0.50 points or 5% of bid price, whichever is higher
Minimum Quote Size	Not fewer than 5 contracts

Hang Seng Index and Hang Seng China Enterprises Index Total Return Index Futures

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 Index (Gross Total Return Index) Futures Contracts	600.00 Index points or 1% of bid price, whichever is higher
Hang Seng Index (Net Total Return Index) Futures Contracts	600.00 Index points or 1% of bid price, whichever is higher
Hang Seng China Enterprises Index (Gross Total Return Index) Futures Contracts	200.00 Index points or 1% of bid price, whichever is higher
Hang Seng China Enterprises Index (Net Total Return Index) Futures Contracts	200.00 Index points or 1% of bid price, whichever is higher

Minimum Quote Size

1 contract

Stock Index Options (Excluding Weekly Index Options)

There are three types of market makers in HKEX’s stock index options market:
- Primary Market Maker (PMM);
- Market maker providing continuous quotes (CQMM); and
- Market maker responding to quote request (QRMM).

For details of PMM Program, please refer to the hyperlink below:

http://www.hkex.com.hk/eng/market/dv_tradfinfo/pmm.htm

Below is a summary of the CQMM and QRMM program (T Session):

Market Making
Obligation

Provision of
Continuous Quotes (CQ)

Response to
Quote Requests (QR)

Assigned Series

Not less than 50 option series* (except that, not less than 25 option series for Mini-Hang Seng Index Options and Mini-HSCEI Index Options**)

All QR issued (except for QR in long dated index options)

Trading Requirement

Provision of CQ 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 less than 20 seconds, unless a change in the price level of the Spot Month Futures Contracts of the underlying index occurs during the 20 seconds display period, in which case, market makers may change their quotes

Maximum bid/offer spread
(Except for Long Dated Index Options)

For HSI Options and HSCEI Options:

Month	Price	Max. bid/offer spread
1^st, 2^nd, 3^rd, 4^th calendar	1-750 points	Max (30 points, 10% of bid)
1^st, 2^nd, 3^rd, 4^th calendar	> 750 points	75 points
1^{st ,} 2^nd quarter	1-750 points	Max (40 points, 20% of bid)
1^{st ,} 2^nd quarter	> 750 points	150 points
3^rd quarter	1-750 points	Max (50 points, 25% of bid)
3^rd quarter	> 750 points	200 points

For Mini-HSI Options and Mini-HSCEI Options:

Month	Price	Max. bid/offer spread
1^st, 2^nd calendar	1-750 points	Max (30 points, 10% of bid)
1^st, 2^nd calendar	> 750 points	75 points
1^st quarter	1-750 points	Max (40 points, 20% of bid)
1^st quarter	> 750 points	150 points
2^nd quarter	1-750 points	Max (40 points, 20% of bid)
2^nd quarter	> 750 points	150 points

Minimum Quote Size

For HSI Options and HSCEI Options

Month	Min. Quote Size
1^st, 2^nd, 3^rd, 4^th calendar	5 contracts
1^{st ,} 2^nd, 3^rd quarter	3 contracts

For Mini-HSI Options and Mini-HSCEI Options

Month	Min. Quote Size
1^st , 2^nd calendar	5 contracts
1^{st ,} 2^nd quarter	3 contracts

* For HSI Options and HSCEI Options, CQMM should provide bid/offer quotes in at least 50 option series chosen from the following selection pool:

Contract Month	Option Series	Series For Selection
Contract Month	Option Series			Call	Put
Spot month	Out-of-the-Money	15	15
Spot month	In-the-Money	2	2
2^nd Calendar Month	Out-of-the-Money	15	15
2^nd Calendar Month	In-the-Money	2	2
3^rd Calendar Month	Out-of-the-Money	15	15
3^rd Calendar Month	In-the-Money	2	2
4^th Calendar Month	Out-of-the-Money	10	10
4^th Calendar Month	In-the-Money	2	2
1st Quarter Month	Out-of-the-Money	10	10
1st Quarter Month	In-the-Money	2	2
2nd Quarter Month	Out-of-the-Money	10	10
2nd Quarter Month	In-the-Money	2	2
3^rd Quarter Month	Out-of-the-Money	10	10
3^rd Quarter Month	In-the-Money	2	2
Total		198

** For Mini-HSI Options and Mini-HSCEI Options, CQMM should provide bid / offer quotes in at least 25 option series chosen from the following selection pool:

Contract Month	Option Series	Series For Selection
Contract Month	Option Series			Call	Put
Spot month	Out-of-the-Money	15	15
Spot month	In-the-Money	2	2
2^nd Calendar Month	Out-of-the-Money	15	15
2^nd Calendar Month	In-the-Money	2	2
1st Quarter Month	Out-of-the-Money	10	10
1st Quarter Month	In-the-Money	2	2
2nd Quarter Month	Out-of-the-Money	10	10
2nd Quarter Month	In-the-Money	2	2
Total		116

Below is a summary of the CQMM and QRMM program (T +1 Session):

Market Making
Obligation

Provision of
Continuous Quotes (CQ)

Response to
Quote Requests (QR)

Assigned Series

Not less than 50 option series* (except that, not less than 25 option series for Mini-Hang Seng Index Options **)

All QR issued (except for QR in long dated index options)

Trading Requirement

Provision of CQ not less than 35%
of the trading hours in each calendar month

Response to not less than 35%
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

Maximum bid/offer spread
(Except for Long Dated Index Options)

For HSI Options and HSCEI Options:

Month	Price	Max. bid/offer spread
1^st, 2^nd, 3^rd, 4^thcalendar	1-750 points	Max (40 points, 20% of bid)
1^st, 2^nd, 3^rd, 4^thcalendar	> 750 points	150 points
1^{st ,}2^ndquarter	1-750 points	Max (60 points, 30% of bid)
1^{st ,}2^ndquarter	> 750 points	225 points
3^rdquarter	1-750 points	Max (80 points, 40% of bid)
3^rdquarter	> 750 points	300 points

For Mini-HSI Options:

Month	Price	Max. bid/offer spread
1^st, 2^ndcalendar	1-750 points	Max (40 points, 20% of bid)
1^st, 2^ndcalendar	> 750 points	150 points
1^stquarter	1-750 points	Max (60 points, 30% of bid)
1^stquarter	> 750 points	225 points
2^ndquarter	1-750 points	Max (60 points, 30% of bid)
2^ndquarter	> 750 points	225 points

Minimum Quote Size

For HSI Options and HSCEI Options

Month	Min. Quote Size
1^st, 2^nd, 3^rd, 4^thcalendar	3 contracts
1^{st ,}2^nd, 3^rdquarter	2 contracts

For Mini-HSI Options

Month	Min. Quote Size
1^st, 2^ndcalendar	3 contracts
1^{st ,}2^ndquarter	2 contracts

* For HSI Options and HSCEI Options, CQMM in the T+1 Session should provide bid/offer quotes in at least 50 option series chosen from the following selection pool:

Contract Month	Option Series	Series For Selection
		Call	Put
Spot month	Out-of-the-Money	15	15
Spot month	In-the-Money	2	2
2^ndCalendar Month	Out-of-the-Money	15	15
2^ndCalendar Month	In-the-Money	2	2
3^rdCalendar Month	Out-of-the-Money	15	15
3^rdCalendar Month	In-the-Money	2	2
4^thCalendar Month	Out-of-the-Money	10	10
4^thCalendar Month	In-the-Money	2	2
1st Quarter Month	Out-of-the-Money	10	10
1st Quarter Month	In-the-Money	2	2
2nd Quarter Month	Out-of-the-Money	10	10
2nd Quarter Month	In-the-Money	2	2
3^rdQuarter Month	Out-of-the-Money	10	10
3^rdQuarter Month	In-the-Money	2	2
Total		198

** For Mini-HSI Options, CQMM in the T+1 Session should provide bid / offer quotes in at least 25 option series chosen from the following selection pool:

Contract Month	Option Series	Series For Selection
		Call	Put
Spot month	Out-of-the-Money	15	15
Spot month	In-the-Money	2	2
2^ndCalendar Month	Out-of-the-Money	15	15
2^ndCalendar Month	In-the-Money	2	2
1st Quarter Month	Out-of-the-Money	10	10
1st Quarter Month	In-the-Money	2	2
2nd Quarter Month	Out-of-the-Money	10	10
2nd Quarter Month	In-the-Money	2	2
Total		116

Weekly Stock Index Options

		MM for T Session	MM for T+1 Session
For MM that provides continuous quote (CQ):
Min. % of trading hours coverage		70% of T Session	70% of T+1 Session
Min. Quote series (selected from the pool*)		30 series in total for spot week and next week contracts (or 15 series if only one contract is available.**)	30 series in total for spot week and next week contracts (or 15 series if only one contract is available.**)
Min. Quote Size		5 contracts	5 contracts
Max. bid/offer spread	Price 1-750 points >750 points	Max. bid/offer spread Max (30 points, 10% of bid) 75 points	Max. bid/offer spread Max (40 points, 20% of bid) 150 points
For MM that responds to quote request (QR):
Min. % of QR responses		70% of QR issued in T Session	70% of QR issued in T+1 Session
Max. Time to respond to QR and Min. Display time		20 sec	20 sec
Min. Quote Size		5 contracts	5 contracts
Max. bid/offer spread	Price 1-750 points >750 points	Max. bid/offer spread Max (30 points, 10% of bid) 75 points	Max. bid/offer spread Max (40 points, 20% of bid) 150 points

*CQMM can select options series from the following CQ series selection pool:

Contract Month	Moneyness	Call	Put
Spot Week	Nearest OTM	14	14
Spot Week	Nearest ITM	2	2
Next Week	Nearest OTM	14	14
Next Week	Nearest ITM	2	2
Total		64

Market Maker (MM) Incentives for Stock Index Futures and Options

Product	Market Maker Fee (HK$)	Market Maker in Other Stock Index Products with same underlying Index Fee (HK$)*	Standard Exchange Fee (HK$)
Hang Seng Index Futures (HSIF)	n.a.	3.50 (MM in HSIO, MHIF or MHIO)	10.00
Hang Seng Index Options (HSIO)	2.00**	3.50 (MM in MHIF or MHIO)	10.00
Weekly Hang Seng Index Options (WHSI)	2.00**	3.50 (MM in HSIO, MHIF or MHIO)	10.00
Mini Hang Seng Index Futures (MHIF)	n.a.	1.00 (MM in HSIO, WHSIO or MHIO)	3.50
Mini Hang Seng Index Options (MHIO)	0.40**	0.70 (MM in HSIO, WHSIO or MHIF)	2.00
Hang Seng China Enterprises Index Futures (HHIF)	n.a.	1.00 (MM in HHIO or MCHO)	3.50
Hang Seng China Enterprises Index Options (HHIO)	0.50**	1.00 (MM in HHIFor MCHO)	3.50
Weekly Hang Seng China Enterprises Index Options (WHHIO)	0.50**	1.00 (MM in HHIO or MCHO)	3.50
Mini-Hang Seng China Enterprises Index Futures (MCHF)	n.a.	0.70 (MM in HHIO, WHHIO or MCHO)	2.00
Mini-Hang Seng China Enterprises Index Options (MCHO)	0.20	0.35 (MM in HHIO)	1.00
HSI Dividend Futures	0.60	n.a.	3.00
HSCEI Dividend Futures	0.30	n.a.	1.50
Hang Seng (Gross Total Return) Index Futures	6.00	n.a.	30.0
Hang Seng (Net Total Return) Index Futures	6.00	n.a.	30.0
Hang Seng China Enterprises (Gross Total Return) Index Futures	2.00	n.a.	10.0
Hang Seng China Enterprises (Net Total Return) Index Futures	2.00	n.a.	10.0
HSI Volatility Index Futures	2.00	n.a.	10.00
Sector Index Futures	0.40	n.a.	2.00

* The number of contracts that are eligible for a reduced Exchange Fee may be limited as specified in the Trading Procedures relating to Stock Index Futures and Stock Index Options contained in the HKFE Rules
** If the MM performance in T+1 Session is better than the MM Obligation in T+1 Session, trading fees for the products which the MM make market in the T+1 Session may be waived. Please refer to the circular (ref: MO/DT/026/18) http://www.hkex.com.hk/-/media/HKEX-Market/Services/Circulars-and-Notices/Participant-and-Members-Circulars/HKFE/2018/MO_DT_026_18_e.pdf for details.

Additional Waiver of Monthly Sub-licence fee for OAPI (CQMM of Weekly Stock Index Options)

No. of OAPI	MM for T Session	MM for T+1 Session
Weekly HSI Options	1 OAPI (HK$2,600 per month)	4 OAPIs (HK$10,400 per month)
Weekly HSCEI Options	1 OAPI (HK$2,600 per month)	4 OAPIs (HK$10,400 per month)

Liquidity Providers Obligations and Incentives of Hang Seng TECH Index Futures

Tier	Assigned Contract Months	Minimum % Trading Hours (T session)	Maximum Bid/Offer Spread	Minimum Quote Quantity (contracts)	Monthly HSTECH futures volume
A	Spot Month	70%	0.07% of bid price	2	N/A
B	Spot Month	70%	0.10% of bid price	2	N/A
C	Spot Month	50% - 70%	0.10% of bid price	2	1,000
D	Spot Month	less than 50%	0.10% of bid price	2	N/A

Incentives

- Trading fee discount and OAPI sub- license fee wavier

Liquidity Providers Obligations and Incentives of Hang Seng TECH Index Options

Contracts	Trading Requirement	Assigned Series	Maximum bid / offer spread (ticks)	Minimum Quote Size (contracts)	Minimum % of Trading hours
Hang Seng TECH Index Options	CQ	Not less than 50 option series (choose from Table 1)	Refer to Table 2	5	65%

Table 1 (Options series selection pool)

Contract Month	Option Series	Series for selection
Contract Month	Option Series	Call	Put
Spot Calendar Month	Out-of-the-Money	15	15
	In-the-Money	2	2
Next Calendar Month	Out-of-the-Money	15	15
	In-the-Money	2	2
First Quarter Month	Out-of-the-Money	10	10
	In-the-Money	2	2
Second Quarter Month	Out-of-the-Money	10	10
	In-the-Money	2	2
Total		116

Table 2 (maximum options bid/offer spread)

Contract Month	Option Premium	Maximum Bid/Offer Spread
Spot Calendar Month and Next Calendar Month	1-750 points	30 points or 10% of bid price, whichever is higher
Spot Calendar Month and Next Calendar Month	More than 750 points	75 points
First Quarter Month and Second Quarter Month	1-750 points	40 points or 20% of bid price, whichever is higher
First Quarter Month and Second Quarter Month	More than 750 points	150 points

Incentives
- Trading fee discount and OAPI sub- license fee wavier

Liquidity Providers Obligations and Incentives of MSCI Asia and Emerging Markets Index Futures

Tier 1 (T session)

Contracts	Assigned Contract Months	Minimum % Trading Hours (T session)	Maximum Bid/Offer Spread	Minimum Quote Quantity (contracts)	Calendar Spread Contract Month	Max. Bid /Offer (index point)	Min. Quote Quantity (Contracts)
MSCI Asia ex Japan Net Total Return (USD) Index Futures	Nearest First Calendar Quarter Month	70%	0.15% of bid price	15	Nearest First Quarter Month/ 2nd Quarter Month	1.5	20
MSCI Taiwan Net Total Return (USD) Index Futures	Nearest First Calendar Quarter Month	70%	0.38% of bid price	20	Nearest First Quarter Month/ 2nd Quarter Month	1.5	50
MSCI Japan Net Total Return (USD) Index Futures	Nearest First Calendar Quarter Month	70%	0.20% of bid price	20	Nearest First Quarter Month/ 2nd Quarter Month	10	50
MSCI India Net Total Return (USD) Index Futures	Nearest First Calendar Quarter Month	70%	0.50% of bid price	5	Nearest First Quarter Month/ 2nd Quarter Month	3	10
MSCI China Free Net Total Return (USD) Index Futures	Nearest First Calendar Quarter Month	70%	0.20% of bid price	10	Nearest First Quarter Month/ 2nd Quarter Month	1.8	50
MSCI Indonesia Net Total Return (USD) Index Futures	Nearest First Calendar Quarter Month	70%	0.60% of bid price	10	Nearest First Quarter Month/ 2nd Quarter Month	4	50
MSCI Thailand Net Total Return (USD) Index Futures	Nearest First Calendar Quarter Month	70%	0.45% of bid price	15	Nearest First Quarter Month/ 2nd Quarter Month	4	40
MSCI Malaysia Net Total Return (USD) Index Futures	Nearest First Calendar Quarter Month	70%	0.45% of bid price	5
MSCI EM Asia Net Total Return (USD) Index Futures	Nearest First Calendar Quarter Month	70%	0.18% of bid price	15	Nearest First Quarter Month/ 2nd Quarter Month	1.2	40
MSCI Hong Kong Net Total Return (USD) Index Futures	Nearest First Calendar Quarter Month	70%	0.38% of bid price	5
MSCI Philippines Net Total Return (USD) Index Futures	Nearest First Calendar Quarter Month	70%	0.75% of bid price	5
MSCI Emerging Markets Net Total Return (USD) Index Futures	Nearest First Calendar Quarter Month	70%	0.15% of bid price	20	Nearest First Quarter Month/ 2nd Quarter Month	1	50
MSCI Emerging Markets (USD) Index Futures	Nearest First Calendar Quarter Month	70%	0.15% of bid price	20	Nearest First Quarter Month/ 2nd Quarter Month	1.5	20
MSCI Taiwan 25/50 (USD) Index Futures	Spot Month	70%	0.35% of bid price	5	Spot Month/ 2nd Calendar Month	5	20
MSCI Taiwan 25/50 (USD) Index Futures	Nearest First Calendar Quarter Month	70%	0.35% of bid price	5	Spot Month/ 2nd Calendar Month	5	20
MSCI Singapore Free (SGD) Index Futures	Spot Month	70%	0.35% of bid price	5
MSCI Singapore Free (SGD) Index Futures	Nearest First Calendar Quarter Month	70%	0.35% of bid price	5
MSCI Japan (JPY) Index Futures	Nearest First Calendar Quarter Month	70%	0.20% of bid price	20
MSCI Japan Net Total Return (JPY) Index Futures	Nearest First Calendar Quarter Month	70%	0.38% of bid price	25
MSCI China (USD) Index Futures	Spot Month	70%	0.118% of bid	2
MSCI China (USD) Index Futures	Next Calendar Month	70%	0.139% of bid	2
MSCI China Net Total Return Index Futures	Nearest First Quarter Month	70%	0.119% of bid	2	Nearest First Quarter Month/ 2nd Quarter Month	0.32	2

Tier 1 (T+1 Session)

Contracts	Assigned Contract Months	Minimum % Trading Hours (T+1 session)	Maximum Bid/Offer Spread	Minimum Quote Quantity (contracts)
MSCI Asia ex Japan Net Total Return (USD) Index Futures	Nearest First Calendar Quarter Month	50%	0.15% of bid price	15
MSCI China Free Net Total Return (USD) Index Futures	Nearest First Calendar Quarter Month	50%	0.25% f bid price	10
MSCI Taiwan Net Total Return (USD) Index Futures	Nearest First Calendar Quarter Month	50%	0.38% of bid price	20
MSCI Japan Net Total Return (USD) Index Futures	Nearest First Calendar Quarter Month	50%	0.15% of bid price	20
MSCI India Net Total Return (USD) Index Futures	Nearest First Calendar Quarter Month	50%	0.25% of bid price	5
MSCI Indonesia Net Total Return (USD) Index Futures	Nearest First Calendar Quarter Month	50%	0.60% of bid price	10
MSCI EM Asia Net Total Return (USD) Index Futures	Nearest First Calendar Quarter Month	50%	0.18% of bid price	15
MSCI Emerging Markets Net Total Return (USD) Index Futures	Nearest First Calendar Quarter Month	50%	0.15% of bid price	20
MSCI Taiwan 25/50 (USD) Index Futures	Spot Month	50%	0.35% of bid price	5
MSCI Taiwan 25/50 (USD) Index Futures	Nearest First Calendar Quarter Mont	50%	0.35% of bid price	５
MSCI Singapore Free (SGD) Index Futures	Spot Month	50%	0.35% of bid price	5
MSCI Singapore Free (SGD) Index Futures	Nearest First Calendar Quarter Month	50%	0.3５% of bid price	５
MSCI China Net Total Return (USD) Index Futures	Nearest First Quarter Month	50%	0.128% of bid price	2

Tier 2

Products	Assigned Contract Months	Minimum % Trading Hours (T Session)	Maximum Bid/Offer Spread	Minimum Quote Quantity (contracts)
MSCI Taiwan (USD) Index Futures (T session)	Spot	70%	0.045 - 0.09% of bid price	2
MSCI Taiwan (USD) Index Futures (T +1 session)	Spot/Next Calendar Month	50%	0.055% of bid price	2
MSCI Taiwan (USD) Index Futures Calendar Spread	Spot/Next Calendar Month	70%	2 ticks	25

Products

Assigned Contract Months

Minimum % Trading Hours

(T Session)

Maximum Bid/Offer Spread

Minimum Quote Quantity
(contracts)

MSCI Taiwan (USD) Index Futures (T session)

Spot

70%

0.045 - 0.09% of bid price

MSCI Taiwan (USD) Index Futures (T +1 session)

Spot/Next Calendar Month

50%

0.055% of bid price

MSCI Taiwan (USD) Index Futures Calendar Spread

Spot/Next Calendar Month

70%

2 ticks

Incentives for MSCI Asia and Emerging Market Index Futures (Tier 1 )

- Discounted trading fee of USD 0.3 for USD contracts
- Cash Incentive: Outright: HK$25,000 per contract per trading session per month
- Cash Incentive: Calendar Spread: HK$12,500 per contract per trading session
- 1 OAPI licence fee waiver per contract (Except T+1 session and calendar spread)

For the details of the incentive payment, please refer our circular

Incentives for MSCI Asia and Emerging Market Index Futures (Tier 2)

- Discounted trading fee of USD 0.3 for USD contracts
- Cash Incentive T Session: HK$150,000 to HK$ 50,000 per contract per trading session per month
- Cash Incentive: T+1 Session: HK$75,000 per contract per trading session per month
- Cash Incentive: T Session Calendar Spread; HK$50,000 per contract per trading session per month
- 5 - 15 OAPIs licence fee waiver per contract for T session; 4 OAPIs for T+1 session and 2 OAPIs for Calendar Spread
- Bundled fee rebates including HSI Futures and HSCEI Futures on 1:1 volume traded basis in aggregated volume of designated contracts, Market data and Hosting services fee (Max. HK$ 400,000)

For the details of the incentive payment, please refer our circular

Block Trade Participant (BTP) Program

Requirement:
- The minimum block trade execution volume requirement is 20,000 contracts per quarter in total for the MSCI Asia and Emerging Market Index Futures.
Performance measurement:
- BTP will be ranked based on the total number of valid block trade contracts executed in the MSCI Asia and Emerging Market Index Futures.
Only the top three BTPs in any given quarter will receive incentives.

Incentive:

1) The first BTP is entitled HK$1,200,000; the second BTP is entitled HK$450,000 and the third BTP is HK$150,000

Stock Futures

Market Maker Scheme

Market Making Obligation

Market Making Obligation	Provision of Continuous Quotes (CQ)	Response to Quote Requests (QR)
Assigned Contract	At least the first 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 10 seconds
Minimum Display Time	Not less than 20 seconds, unless a change in the nominal price of the underlying stock occurs during that period, in which case, the MM may change its Quote provided
Maximum Bid/Offer Spread	4 times the best bid / offer spread of the underlying stock or HK$0.15, whichever is greater
Minimum Quote Size	A minimum of 10 contracts

Market Maker Incentives for Stock Futures

Product	Market Maker Fee (HK$)	Standard Exchange Fee (HK$)
Stock Futures	Subject to fulfilment the obligations, Market Maker in HK Stock Futures will be entitled to trading fee waiver (except for stock futures on Tracker Fund of Hong Kong and Hang Seng China Enterprises Index ETF)	Tier 1: HK$3.0; Tier 2: HK$1.0; Tier 3: HK$0.5

Liquidity Provider Program

Liquidity Provider be required to provide continuous quotes in any of the stock futures contracts below:

Stock Code	Underlying Stock	Minimum Quote Quantity (contracts)	Assigned Contract Months	Minimum % Trading Hours Coverage	Max Bid/Ask Spread
5	HSBC Holdings Plc.	10	Spot and next calendar month	70%	4 times the best bid / offer spread of the underlying stock or HK$0.15, whichever is greater
388	Hong Kong Exchanges and Clearing Limited	10
700	Tencent Holdings Ltd.	10
939	China Construction Bank Corporation	10
941	China Mobile Limited	10
1398	Industrial and Commercial Bank of China Limited	10
2318	Ping An Insurance (Group) Company of China, Ltd.	10
2822	CSOP FTSE China A50 ETF	10
2823	iShares FTSE A50 China Index ETF	10
3188	China AMC CSI300 Index ETF	10
27	Galaxy Entertainment Group Limited	5	Spot and next calendar month	70%	4 times the best bid / offer spread of the underlying stock or 0.5% of Quotation bid, whichever is greater
175	Geely Automobile Holdings Limited	5
386	China Petroleum & Chemical Corporation	20
788	China Tower Corporation Limited	5
883	CNOOC Limited	20
914	Anhui Conch Cement Company Limited	5
1299	AIA Group Limited	5
1810	XiaoMi Corporation	5
1878	Budweiser Brewing Company APAC Ltd.	5
1918	Sunac China Holdings Limited	5
1928	Sands China Ltd	5
2007	Country Garden Holdings Company Limited	5
2018	AAC Technologies Holdings Inc	2
2382	Sunny Optical Technology	2
2628	China Life Insurance Company Limited	20
3333	China Evergrande Group	5
3690	Meituan	5
3968	China Merchants Bank Co., Ltd.	10
9618	JD.com, Inc	5
9988	Alibaba Group Holdings Limited	5
9999	NetEase, Inc.	5

Note: LP shall not be required to fulfill liquidity providing requirements during the first five minutes of each morning trading session.

Incentives for Liquidity Providers

a) Subject to fulfilment the obligations, Liquidity Providers will be entitled to trading fee waiver (except for stock futures on Tracker fund oh Hong Kong and Hang Seng Enterprises Index ETF)

b) Waiver of two OMnet Application Programming Interface (OAPI) monthly sub-licence fee (i.e. HK$5,200 per month or equivalent) per selected stock futures contract; and

c) Waiver of one-off fee for applying for an increase in the Central Gateway throughput rate (Securities Throttle) by one standard Securities Throttle rate (i.e. HK$50,000) per selected stock futures contract.

Stock Options

There are three types of market makers in HKEX’s stock options market:

- Primary Market Maker (PMM);

- Market maker providing continuous quotes (CQMM); and

- Market maker responding to quote request (QRMM).

For details of PMM Program, please refer to the hyperlink below:

http://www.hkex.com.hk/eng/market/dv_tradfinfo/pmm.htm

Below is a summary of the CQMM and QRMM program:

Market Making Obligation	Provision of Continuous Quotes (CQ)		Response to Quote Requests (QR)
Assigned Series #	Not less than 50 option series in an option class		QR issued in options series in an option class
Trading Requirement	Provision of CQ for the assigned option series in an option class for 50% or more of the trading hours in a month		Response to 50% or more QR in an option class in a month
Maximum Time Limit for Responding to QR	N/A		Response within 20 seconds on receipt of a QR
Minimum Display Time (QR)	N/A		At least 20 seconds, unless a change in the underlying stock price occurs during the 20 seconds display period
Maximum Bid/Offer Spread	Option Series	Liquidity Level 1*		Liquidity Level 2*
	Spot month with 3 days or less to expiry	20% of the bid price of the quote or 3 times the best bid/offer spread of the underlying securities, whichever is the lower.		20% of the bid price of the quote or 4 times the best bid/offer spread of the underlying securities, whichever is the lower.
	Spot month with 4 days or more to expiry and the next 3 calendar expiry months	10% of the bid price of the quote or 3 times the best bid/offer spread of the underlying securities, whichever is the lower.		10% of the bid price of the quote or 4 times the best bid/offer spread of the underlying securities, whichever is the lower.
	The next 2 calendar quarter expiry months	20% of the bid price of the quote or 4 times the best bid/offer spread of the underlying securities, whichever is the lower.		20% of the bid price of the quote or 6 times the best bid/offer spread of the underlying securities, whichever is the lower.
	The 3rd calendar quarter expiry month and any other longer-dated expiry month as the Exchange deems necessary	20% of the bid price of the quote or 8 times the best bid/offer spread of the underlying securities, whichever is the lower.		20% of the bid price of the quote or 12 times the best bid/offer spread of the underlying securities, whichever is the lower.
Minimum Quote Size	Liquidity Level 1 - 30 contracts Liquidity Level 2 - 15 contracts

* Liquidity Level Classification
“Notwithstanding the above, a Market Maker that provides quotes in option classes with a minimum price fluctuation of HK$0.01 or RMB0.01 will not be obliged to quote a spread narrower than the best bid/offer of the underlying security (at the time of issuing the quote) plus 5 minimum price fluctuations (if the numerical value of the nominal price of such underlying security is below 100) or plus 10 minimum price fluctuations (if the numerical value of the nominal price of the underlying security is equal to or above 100), and a Market Maker that provides quotes in option classes with a minimum price fluctuation of HK$0.001 or RMB0.001 will not be obliged to quote a spread narrower than HK$0.03 or RMB0.03.”

Liquidity levels of option classes are determined by the Exchange from time to time based on the trading liquidity in the underlying stocks

Stock Option Class	HKATS Code	From 29 April 2022 to 30 May 2022		From 31 May 2022 to 29 June 2022
		Liquidity Level	Minimum Quote Size	Liquidity Level	Minimum Quote Size
iShares FTSE A50 China Index ETF	A50	1	30 lots	2	15 lots
AAC Technologies Holdings Inc	AAC	2	15 lots	2	15 lots
Anhui Conch Cement Company Limited	ACC	2	15 lots	2	15 lots
AIA Group Limited	AIA	2	15 lots	2	15 lots
Air China Ltd.	AIR	2	15 lots	2	15 lots
Alibaba Group Holding Limited	ALB	1	30 lots	1	30 lots
Aluminum Corporation of China Limited	ALC	1	30 lots	1	30 lots
Alibaba Health Information Technology Ltd.	ALH	2	15 lots	2	15 lots
ChinaAMC CSI 300 Index ETF	AMC	2	15 lots	2	15 lots
ANTA Sports Products Ltd	ANA	2	15 lots	2	15 lots
Bank of Communications Company Limited	BCM	1	30 lots	1	30 lots
The Bank of East Asia, Limited	BEA	2	15 lots	2	15 lots
Baidu, Inc.	BIU	2	15 lots	2	15 lots
Bilibili Inc.	BLI	2	15 lots	2	15 lots
BOC Hong Kong (Holdings) Limited	BOC	1	30 lots	1	30 lots
Budweiser Brewing Company APAC Limited	BUD	1	30 lots	1	30 lots
BYD Electronic International Company Limited	BYE	2	15 lots	2	15 lots
BYD Company Limited	BYD	2	15 lots	2	15 lots
China Communications Construction Company Limited	CCC	1	30 lots	2	15 lots
China Coal Energy Company Limited	CCE	1	30 lots	2	15 lots
China Cinda Asset Management Company Limited	CDA	1	30 lots	1	30 lots
CGN Power Co., Ltd	CGN	1	30 lots	1	30 lots
China Mobile Limited	CHT	1	30 lots	1	30 lots
China Unicom (Hong Kong) Limited	CHU	1	30 lots	1	30 lots
CITIC Limited	CIT	2	15 lots	2	15 lots
CK Hutchison Holdings Limited	CKH	2	15 lots	2	15 lots
CK Asset Holdings Limited	CKP	2	15 lots	2	15 lots
China Life Insurance Company Limited	CLI	1	30 lots	1	30 lots
CLP Holdings Limited	CLP	2	15 lots	2	15 lots
China Merchants Bank Company Limited	CMB	1	30 lots	1	30 lots
CNOOC Limited	CNC	1	30 lots	1	30 lots
Country Garden Holdings Co. Ltd	COG	2	15 lots	2	15 lots
China Overseas Land & Investment Limited	COL	2	15 lots	2	15 lots
COSCO Shipping Holdings Co., Ltd	COS	2	15 lots	2	15 lots
Cathay Pacific Airways Limited	CPA	2	15 lots	2	15 lots
China Petroleum & Chemical Corporation	CPC	1	30 lots	1	30 lots
China Pacific Insurance (Group) Company Limited	CPI	1	30 lots	2	15 lots
China Railway Construction Corporation Limited	CRC	1	30 lots	1	30 lots
China Railway Group Limited	CRG	1	30 lots	1	30 lots
China Resources Land Ltd	CRL	2	15 lots	2	15 lots
CSOP FTSE China A50 ETF	CSA	1	30 lots	1	30 lots
China Shenhua Energy Company Limited	CSE	1	30 lots	1	30 lots
CSPC Pharmaceutical Group Ltd.	CSP	2	15 lots	2	15 lots
China CITIC Bank Corporation Limited	CTB	1	30 lots	1	30 lots
China Telecom Corporation Limited	CTC	1	30 lots	1	30 lots
CITIC Securities Co. Ltd.	CTS	2	15 lots	2	15 lots
Dongfeng Motor Group Company Limited	DFM	2	15 lots	2	15 lots
China Evergrande Group	EVG	1	30 lots	2	15 lots
Guangzhou Automobile Group Co. Ltd.	GAC	2	15 lots	2	15 lots
Geely Automobile Holdings Ltd.	GAH	2	15 lots	2	15 lots
Xinyi Glass Holdings Limited	GHL	2	15 lots	2	15 lots
Ganfeng Lithium Co., Ltd.	GLI	2	15 lots	2	15 lots
Galaxy Entertainment Group Limited	GLX	2	15 lots	2	15 lots
Great Wall Motor Company Limited	GWM	2	15 lots	2	15 lots
Haitong Securities Co, Ltd	HAI	2	15 lots	2	15 lots
Hang Seng H-Share Index ETF	HCF	1	30 lots	1	30 lots
Haidilao International Holding Limited	HDO	2	15 lots	2	15 lots
Power Assets Holdings Limited	HEH	2	15 lots	2	15 lots
Hong Kong Exchanges and Clearing Limited	HEX	2	15 lots	2	15 lots
Hengan International Group Co. Limited	HGN	2	15 lots	2	15 lots
HSBC Holdings Plc.	HKB	1	30 lots	1	30 lots
The Hong Kong and China Gas Company Limited	HKG	1	30 lots	1	30 lots
Henderson Land Development Company Limited	HLD	2	15 lots	2	15 lots
Huaneng Power International, Inc.	HNP	1	30 lots	1	30 lots
Hang Seng Bank Limited	HSB	1	30 lots	2	15 lots
JD.com, Inc.	JDC	2	15 lots	2	15 lots
JD Health International Inc.	JDH	2	15 lots	2	15 lots
Jiangxi Copper Company Limited	JXC	2	15 lots	2	15 lots
Kingdee International Software Group Co., Ltd.	KDS	2	15 lots	2	15 lots
Kunlun Energy Company Limited	KLE	2	15 lots	2	15 lots
Kingsoft Corporation Limited	KSO	2	15 lots	2	15 lots
Kuaishou Technology	KST	2	15 lots	2	15 lots
Li Auto Inc.	LAU	2	15 lots	2	15 lots
Lenovo Group Limited	LEN	1	30 lots	1	30 lots
Link Real Estate Investment Trust	LNK	2	15 lots	2	15 lots
Li Ning Company Limited	LNI	2	15 lots	2	15 lots
China Mengniu Dairy Co Ltd	MEN	2	15 lots	2	15 lots
Meituan Dianping	MET	2	15 lots	2	15 lots
MGM China Holdings Limited	MGM	2	15 lots	2	15 lots
XiaoMi Corporation	MIU	1	30 lots	1	30 lots
China Molybdenum Co., Ltd.	MOL	2	15 lots	2	15 lots
China Minsheng Banking Corporation	MSB	1	30 lots	1	30 lots
MTR Corporation Limited	MTR	2	15 lots	2	15 lots
China National Building Material Company Limited	NBM	2	15 lots	2	15 lots
New China Life Insurance Co. Ltd	NCL	2	15 lots	2	15 lots
Nongfu Spring Company Limited	NFU	2	15 lots	2	15 lots
NetEase, Inc.	NTE	2	15 lots	2	15 lots
New World Development Company Limited	NWD	2	15 lots	2	15 lots
Ping An Insurance (Group) Company of China, Limited	PAI	1	30 lots	1	30 lots
PetroChina Company Limited	PEC	1	30 lots	1	30 lots
XPeng, Inc.	PEN	2	15 lots	2	15 lots
Ping An Healthcare and Technology Co., Ltd.	PHT	2	15 lots	2	15 lots
PICC Property and Casualty Company Limited	PIC	2	15 lots	2	15 lots
The People’s Insurance Company (Group) of China Limited	PIN	1	30 lots	1	30 lots
Guangzhou R&F Properties Company Limited	RFP	1	30 lots	1	30 lots
Sands China Limited	SAN	1	30 lots	1	30 lots
Sino Biopharmaceutical Limited	SBO	2	15 lots	2	15 lots
Sun Hung Kai Properties Limited	SHK	2	15 lots	2	15 lots
Xinyi Solar Holdings Ltd.	SHL	1	30 lots	2	15 lots
Shenzhou International Group Holdings Limited	SHZ	2	15 lots	2	15 lots
Semiconductor Manufacturing International Corp.	SMC	2	15 lots	2	15 lots
Sunny Optical Technology (Group) Co. Ltd.	SNO	2	15 lots	2	15 lots
Sinopharm Group Co. Ltd.	SNP	2	15 lots	2	15 lots
Sunac China Holdings Ltd.	SUN	2	15 lots	2	15 lots
Swire Pacific Limited 'A'	SWA	2	15 lots	2	15 lots
Tencent Holdings Limited	TCH	1	30 lots	1	30 lots
Techtronic Industrial Co., Limited	TIC	2	15 lots	2	15 lots
Tracker Fund of Hong Kong	TRF	1	30 lots	1	30 lots
Trip.com Group Limited	TRP	2	15 lots	2	15 lots
China Vanke Co. Ltd.	VNK	2	15 lots	2	15 lots
Weibo Corporation	WEB	2	15 lots	2	15 lots
WH Group Limited	WHG	1	30 lots	1	30 lots
The Wharf (Holdings) Limited	WHL	2	15 lots	2	15 lots
Want Want China Holdings Limited	WWC	1	30 lots	1	30 lots
WuXi Biologics (Cayman) Inc.	WXB	2	15 lots	2	15 lots
Agricultural Bank of China Limited	XAB	1	30 lots	1	30 lots
Bank of China Limited	XBC	1	30 lots	1	30 lots
China Construction Bank Corporation	XCC	1	30 lots	1	30 lots
Industrial and Commercial Bank of China Limited	XIC	1	30 lots	1	30 lots
Postal Savings Bank of China Co. Ltd.	XPB	1	30 lots	1	30 lots
China Tower Corporation Limited	XTW	1	30 lots	1	30 lots
Yankuang Energy Group Company Limited	YZC	2	15 lots	2	15 lots
ZhongAn Online P & C Insurance Company Limited	ZAO	2	15 lots	2	15 lots
Zijin Mining Group Company Limited	ZJM	2	15 lots	2	15 lots

Changes in liquidity level are in bold

# Stock Options

CQMM should provide bid / offer quotes in at least 50 option series chosen from the following option series:

Contract Month	Option Series	Series For Selection
Contract Month	Option Series			Call Series	Put Series
Spot month	Nearest Out-of-the-Money	7	7
Spot month	Nearest In-the-Money	2	2
Second Calendar month	Nearest Out-of-the-Money	7	7
Second Calendar month	Nearest In-the-Money	2	2
Third Calendar month	Nearest Out-the-Money	7	7
Third Calendar month	Nearest In-of-the-Money	2	2
Fourth Calendar month	Nearest Out-the-Money	7	7
Fourth Calendar month	Nearest In-of-the-Money	2	2
First Quarter month	Nearest Out-the-Money	7	7
First Quarter month	Nearest In-of-the-Money	2	2
Second Quarter month	Nearest Out-the-Money	7	7
Second Quarter month	Nearest In-of-the-Money	2	2
Third Quarter month	Nearest Out-the-Money	7	7
Third Quarter month	Nearest In-of-the-Money	2	2
Total		126

Market Maker Incentives for Stock Options

Stock Options Tier	Trading Requirement		Market Maker Fee (HK$)	Standard Exchange Fee (HK$)
Tier 1	Response to Total Quote Requests in a Month	70% or more	1.50	3.00
	Response to Total Quote Requests in a Month	less than 70%	3.00	3.00
	Provision of Continuous Quotes in the Trading Hours in a Month	70% or more	1.50	3.00
		less than 70%	3.00	3.00
Tier 2	Response to Total Quote Requests in a Month	70% or more	0.80	1.00
	Response to Total Quote Requests in a Month	less than 70%	1.00	1.00
	Provision of Continuous Quotes in the Trading Hours in a Month	70% or more	0.80	1.00
		less than 70%	1.00	1.00
Tier 3^	Response to Total Quote Requests in a Month	70% or more	0.40	0.50
	Response to Total Quote Requests in a Month	less than 70%	0.50	0.50
	Provision of Continuous Quotes in the Trading Hours in a Month	70% or more	0.40	0.50
		less than 70%	0.50	0.50

Currency Futures

Market Maker Obligations for USD/CNH Futures

Market Making Obligation	Provision of Continuous Quotes (CQ)	Response to Quote Requests (QR)
Assigned Contract	9 contract months [i.e. Spot month, the next three calendar months and the next five calendar quarter months]
Trading Requirement	Provision of CQ for not less than 70% of the trading hours in each calendar month (Primary Market Maker) Provision of CQ for not less than 40% of the trading hours in each calendar month (Secondary Market Maker)	Response to not less than 70% of the QR in each calendar month (Primary Market Maker) Response to not less than 40% of the QR in each calendar month (Secondary Market Maker)
Maximum Time Limit for Responding to QR	N/A	Response to a QR within 10 seconds
Maximum Bid/Offer Spread	From 9:00am to end of the day trading session: 20 ticks for spot and next calendar months 50 ticks for 3rd and 4th calendar months 80 ticks for 1st, 2nd, 3rd and 4th calendar quarter months 100 ticks for 5th calendar quarter month For the after-hours trading session: 20 ticks for spot and next calendar months 60 ticks for 3rd and 4th calendar months 100 ticks for 1st, 2nd, 3rd, 4th and 5th calendar quarter months
Minimum Quote Size	A minimum of 10 contracts

Market Maker Obligations for EUR/CNH, JPY/CNH and AUD/CNH Futures

Market Making Obligation	Provision of Continuous Quotes (CQ)	Response to Quote Requests (QR)
Assigned Contract	4 contract months [i.e. Spot month, the next calendar month and the next two calendar quarter months]
Trading Requirement	Provision of CQ for not less than 70% of the trading hours in each calendar month (Primary Market Maker) Provision of CQ for not less than 40% of the trading hours in each calendar month (Secondary Market Maker)	Response to not less than 70% of the QR in each calendar month (Primary Market Maker) Response to not less than 40% of the QR in each calendar month (Secondary Market Maker)
Maximum Time Limit for Responding to QR	N/A	Response to a QR within 10 seconds
Maximum Bid/Offer Spread	50 ticks for spot and next calendar months 100 ticks for other calendar months
Minimum Quote Size	A minimum of 10 contracts

Market Maker Obligations for CNH/USD Futures

Market Making Obligation	Provision of Continuous Quotes (CQ)	Response to Quote Requests (QR)
Assigned Contract	9 contract months [i.e. Spot month, the next two calendar months and the next five calendar quarter months]
Trading Requirement	Provision of CQ for not less than 70% of the trading hours in each calendar month (Primary Market Maker) Provision of CQ for not less than 40% of the trading hours in each calendar month (Secondary Market Maker)	Response to not less than 70% of the QR in each calendar month (Primary Market Maker) Response to not less than 40% of the QR in each calendar month (Secondary Market Maker)
Maximum Time Limit for Responding to QR	N/A	Response to a QR within 10 seconds
Maximum Bid/Offer Spread	5 ticks for spot and next calendar months 10 ticks for 3rd and 4th calendar months 15 ticks for 1st, 2nd, 3rd, 4th and 5th calendar quarter months
Minimum Quote Size	A minimum of 10 contracts

Market Maker Incentives for USD/CNH, EUR/CNH, JPY/CNH, AUD/CNH and CNH/USD Futures

Product	Market Maker Fee (RMB)	Standard Exchange Fee
USD/CNH Futures	Nil	RMB 8.00
EUR/CNH Futures	As specified in appointment letter	RMB 5.00
JPY/CNH Futures	As specified in appointment letter	RMB 5.00
AUD/CNH Futures	As specified in appointment letter	RMB 5.00
CNH/USD Futures	As specified in appointment letter	USD 0.60

Liquidity Provider Obligations on EUR/CNH, JPY/CNH and AUD/CNH Futures

Liquidity Provider Obligation	Provision of Continuous Quotes (CQ)
Assigned Contract	All contract months
Trading Requirement	Provision of CQ for not less than 70% of the trading hours in the assigned calendar months
Maximum Bid/Offer Spread	EUR/CNH Futures: 50 ticks for spot and next months, 80 ticks for next two quarter months JPY/CNH Futures: 50 ticks for spot and next months, 80 ticks for next two quarter months AUD/CNH Futures: 50 ticks for spot and next months, 80 ticks for next two quarter months
Minimum Quote Size	A minimum of 10 contracts

Liquidity Provider Obligations on CNH/USD Futures

Liquidity Provider Obligation	Provision of Continuous Quotes (CQ)
Assigned Contract	Spot, 2nd, 3rd, 4th calendar months and 1st, 2nd, 3rd and 4th calendar quarter months
Trading Requirement	Provision of CQ for not less than 50% of the trading hours in the assigned calendar months
Maximum Bid/Offer Spread	5 ticks for spot and next calendar months, 15 ticks for 3rd and 4th calendar months, 25 ticks for 1st, 2nd, 3rd and 4th calendar quarter months
Minimum Quote Size	A minimum of 10 contracts

Liquidity Provider Incentives for EUR/CNH, JPY/CNH, AUD/CNH and CNH/USD Futures

(i) 100% rebate of trading fee; and

(ii) Certain connection subsidies depending on the number of the Additional RMB Currency Futures products which the Liquidity Providers provide liquidity for.

For more details of the Bundled Liquidity Providing Incentive Program for USD/CNH, AUD/CNH, EUR/CNH, JPY/CNH, CNH/USD, INR/USD and INR/CNH Futures as well as USD/CNH Options, please visit the hyperlink below, and refer to the Incentives section under Related Circulars:

https://www.hkex.com.hk/Products/Listed-Derivatives/Foreign-Exchange/Publications-and-Announcements?sc_lang=en

For more details of the Cash Incentive Program for USD/CNH and INR/USD Futures, please visit the hyperlink below, and refer to the Incentives section under Related Circulars:

https://www.hkex.com.hk/Products/Listed-Derivatives/Foreign-Exchange/Publications-and-Announcements?sc_lang=en

HIBOR Futures

Market Maker Obligations - One-Month HIBOR Futures (HB1)

Market Making
Obligation

Provision of
Continuous Quotes (CQ)

Response to
Quote Requests (QR)

Assigned Contract

Not less than first 3 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

Within 30 seconds on receipt of a QR

Minimum Display Time

Not less than 15 seconds

Maximum Bid/Offer Spread

Not greater 10 Minimum Fluctuations

Not greater 7 Minimum Fluctuations

Minimum Quote Size

Not less than 5 contracts

Not less than 10 contracts

Non-Market Making Hours

A market maker shall not be required to meet the trading requirements during the following period:

1.	The first 5 minutes of each morning trading session; and
2.	11:30 a.m. to 12:00 noon and from 1:30 p.m. to 2:00 p.m. on each Business Day.

Market Market Obligations - Three-Month HIBOR Futures (HB3)

Market Making
Obligation

Provision of
Continuous Quotes (CQ)

Response to
Quote Requests (QR)

Assigned Contract

Spot contract month plus not less than the first 4 quarter 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 on an assigned
contract month within 30 seconds of the QR

Minimum Display Time

Not less than 15 seconds

Maximum Bid/Offer Spread

Not greater than 10 minimum fluctuations

not greater than 7 minimum fluctuations

Minimum Quote Size

not less than 5 contracts

not less than 10 contracts

Non-Market Making Hours

A market maker shall not be required to meet the trading requirements during the following period:

1.	The first 5 minutes of each morning trading session; and
2.	11:30 a.m. to 12:00 noon and from 1:30 p.m. to 2:00 p.m. on each Business Day.

Market Maker Incentives for HIBOR Futures

Product	Market Maker Fee HK$	Standard Fee HK$
One-Month HIBOR Futures Three-Month HIBOR Futures	1.00	5.00

The appointments of LPs are subject to commercial agreements between the Exchange and LPs in terms of price quoting services and incentives. The Chief Executive of HKFE may, at his sole discretion, waive parts of the obligations in view of adverse market conditions which may arise from time to time.

Commodities Products

USD Gold Futures

Obligations	USD Gold Futures
LP Type	1 (Option A)	1 (Option B)	3	4
CQ or QR	CQ
Contract Months	Any 2 of the followings: Spot Month (M), M+1, M+2	M and M+1	Any 1 of the following contracts: M, M+1, M+2; and any 1 of the next Jun or the next Dec contracts
Max. Bid / Offer Spread	M: 4 ticks(T) (~7 basis points)¹ 5 ticks(T+1) (~9 basis points)¹ M+1: 2 ticks(T) (~4 basis points)¹ 3 ticks(T+1) (~5 basis points)¹ M+2: 2 ticks(T) (~4 basis points)¹ 2 ticks(T+1) (~4 basis points)¹	M: 4 ticks (~7 basis points)¹ M+1: 3 ticks (~5 basis points)¹	M: 4 ticks(T) (~7 basis points)¹ 6 ticks(T+1) (~11 basis points)¹ M+1: 2 ticks(T) (~4 basis points)¹ 3 ticks(T+1) (~5 basis points)¹ Farthest month: 3 ticks(T) (~5 basis points)¹ 3 ticks(T+1) (~5 basis points)¹ Other months: 2 ticks(T) (~4 basis points)¹ 3 ticks(T+1) (~5 basis points)¹	M: 4 ticks(T) (~7 basis points)¹ 6 ticks(T+1) (~11 basis points)¹ M+1: 3 ticks(T) (~5 basis points)¹ 3 ticks(T+1) (~5 basis points)¹ Farthest month: 3 ticks(T) (~5 basis points)¹ 3 ticks(T+1) (~5 basis points)¹ Other months: 3 ticks(T) (~5 basis points)¹ 3 ticks(T+1) (~5 basis points)¹
Quote Size (contracts)	9		6
% of Trading Hours	70% (T or T+1)	50% (T) and 94% of LTD	50% (T or T+1)	30% (T or T+1)

Notes:

1. Basis points are calculated and rounded based on HKEX USD Gold Futures Final Settlement Price of 30 Sep 2021 Contract.

2. All basis points are listed for reference only. LP performance will be measured on ticks.

Incentives:

Subject to fulfilment of obligations, Liquidity Provider (“LP”) will enjoy cross-product trading fees, market data fee and hosting services fee and OAPI sub-licence fee waivers.

USD Silver Futures

Obligations	USD Silver Futures
LP Type	3	4
CQ or QR	CQ
Contract Months	M and M+1	Any 2 of the following contracts: M, M+1, M+2, the next Jun or the next Dec contracts
Max. Bid / Offer Spread	M: 15 ticks (~10 basis points)¹ M+1: 14 ticks (~10 basis points)¹	M: 15 ticks (~10 basis points)¹ M+1: 14 ticks (~10 basis points)¹ Other months: 16 ticks (~11 basis points)¹
Quote Size (contracts)	15
% of Trading Hours	40% (T) and 94% of LTD	30% (T or T+1)

Notes:

1. Basis points are calculated and rounded based on HKEX USD Silver Futures Final Settlement Price of 30 Sep 2021 Contract.

2. All basis points are listed for reference only. LP performance will be measured on ticks.

Incentives:

Subject to fulfilment of obligations, Liquidity Provider (“LP”) will enjoy cross-product trading fees, market data fee and hosting services fee and OAPI sub-licence fee waivers.

USD London Metal Mini Futures

Obligations	USD London Metal Mini Futures (Bundled Liquidity Providing Incentive Program)			USD London Mini Metal Futures (Cash Incentive Program)
LP Type	2			N/A
CQ or QR	CQ			CQ
Contract Months	Any 3 of the followings: M, M+1, M+2 or M+3			M+2 and Any 2 of the followings: M, M+1 or M+3
Contracts	Copper	Aluminium	Zinc	Copper	Aluminium	Zinc
Max. Bid / Offer Spread	M+2			M+2
	6 ticks (~3 basis points)¹	3 ticks (~5 basis points)¹	4 ticks (~7 basis points)¹	6 ticks (~3 basis points)¹	3 ticks (~5 basis points)¹	4 ticks (~7 basis points)¹
	Other Months			Other Months
	8 ticks (~4 basis points)¹	4 ticks (~7 basis points)¹	4 ticks (~7 basis points)¹	8 ticks (~4 basis points)¹	4 ticks (~7 basis points)¹	4 ticks (~7 basis points)¹
Quote Size (contracts)	10	10	10	10	10	10
% of Trading Hours	70% (T or T+1)			70% (T or T+1)

Notes:

1. Basis points are calculated and rounded based on LME Official Settlement Price on 30 September 2021.

2. All basis points are listed for reference only. LP performance will be measured on ticks.

Incentives:

Each Liquidity Provider ("LP") will receive incentives upon fulfilment to its obligations.

For more details of the Bundled Liquidity Providing Incentive Program for Commodities Products, please refer to the hyperlinks below:

https://www.hkex.com.hk/-/media/HKEX-Market/Services/Circulars-and-Notices/Participant-and-Members-Circulars/HKFE/2021/MKS_GCMD_003_21_EN.pdf

For more details of the Cash Incentive Program for USD London Metal Mini Futures, please refer to the hyperlink below:

https://www.hkex.com.hk/-/media/HKEX-Market/Services/Circulars-and-Notices/Participant-and-Members-Circulars/HKFE/2021/MKS_GCMD_004_21_EN.pdf

Updated 19 Jul 2017

Market Making/Liquidity Providing Obligations and Incentives

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