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 Taiwan (USD) Index Futures
MSCI Taiwan Net Total Return (USD) Index Futures
MSCI Japan Net Total Return (USD) Index Futures
MSCI India Net Total Return (USD) Index Futures
MSCI China Free Net Total Return (USD) Index Futures
MSCI Indonesia Net Total Return (USD) Index Futures
MSCI Australia Net Total Return (USD) Index Futures
MSCI Thailand Net Total Return (USD) Index Futures
MSCI Malaysia Net Total Return (USD) Index Futures
MSCI EM Asia Net Total Return (USD) Index Futures
MSCI Singapore Net Total Return (USD) Index Futures
MSCI Vietnam Net Total Return (USD) Index Futures
MSCI Hong Kong Net Total Return (USD) Index Futures
MSCI Philippines Net Total Return (USD) Index Futures
MSCI Indonesia (USD) Index Futures
MSCI Emerging Markets Net Total Return (USD) Index Futures
MSCI Emerging Markets (USD) Index Futures
MSCI India (USD) Index Futures
MSCI China Free (USD) Index Futures
MSCI Thailand (USD) Index Futures
MSCI Malaysia (USD) Index Futures
MSCI Philippines (USD) Index Futures
MSCI Vietnam (USD) Index Futures
MSCI Taiwan 25/50 (USD) Index Futures
MSCI Taiwan 25/50 Net Total Return (USD) Index Futures
MSCI Singapore Free (SGD) Index Futures
MSCI Japan (JPY) Index Futures
MSCI Japan Net Total Return (JPY) Index Futures
MSCI Taiwan (USD) Index Futures Calendar Spread
MSCI Taiwan 25/50 (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
CNH Gold Futures
USD Silver Futures
CNH Silver Futures
Iron Ore Futures - Monthly Contract
|
Option Contracts
|
Stock Index Options
|
Hang Seng Index (HSI) Options
Weekly Hang Seng Index (WHSI) Options
Mini-Hang Seng Index (Mini-HSI)Options
Hang Seng China Enterprises Index (HSCEI) 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 |
|
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
|
|
1st, 2nd, 3rd, 4th calendar
|
1-750 points
|
Max (30 points, 10% of bid)
|
|
> 750 points
|
75 points
|
|
1st , 2nd quarter
|
1-750 points
|
Max (40 points, 20% of bid)
|
|
> 750 points
|
150 points
|
|
3rd quarter
|
1-750 points
|
Max (50 points, 25% of bid)
|
|
> 750 points
|
200 points
|
For Mini-HSI Options and Mini-HSCEI Options:
|
Month
|
Price
|
Max. bid/offer spread
|
|
1st, 2nd calendar
|
1-750 points
|
Max (30 points, 10% of bid)
|
|
> 750 points
|
75 points
|
|
1st quarter
|
1-750 points
|
Max (40 points, 20% of bid)
|
|
> 750 points
|
150 points
|
|
2nd quarter
|
1-750 points
|
Max (40 points, 20% of bid)
|
|
> 750 points
|
150 points
|
|
Minimum Quote Size
|
For HSI Options and HSCEI Options
|
Month
|
Min. Quote Size
|
|
1st, 2nd, 3rd, 4th calendar
|
5 contracts
|
|
1st , 2nd, 3rd quarter
|
3 contracts
|
For Mini-HSI Options and Mini-HSCEI Options
|
Month
|
Min. Quote Size
|
|
1st , 2nd calendar
|
5 contracts
|
|
1st , 2nd 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
|
|
|
|
Call
|
Put |
|
Spot month
|
Out-of-the-Money
|
15
|
15
|
|
In-the-Money
|
2
|
2
|
|
2nd Calendar Month
|
Out-of-the-Money
|
15
|
15 |
|
In-the-Money
|
2
|
2
|
|
3rd Calendar Month
|
Out-of-the-Money
|
15 |
15
|
|
In-the-Money
|
2
|
2
|
|
4th Calendar Month
|
Out-of-the-Money
|
10
|
10
|
|
In-the-Money
|
2
|
2
|
|
1st Quarter Month
|
Out-of-the-Money
|
10 |
10
|
|
In-the-Money
|
2
|
2
|
|
2nd Quarter Month
|
Out-of-the-Money
|
10
|
10
|
|
In-the-Money
|
2
|
2
|
|
3rd Quarter Month
|
Out-of-the-Money
|
10
|
10 |
|
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
|
|
|
|
Call
|
Put
|
|
Spot month
|
Out-of-the-Money
|
15
|
15
|
|
In-the-Money
|
2
|
2
|
|
2nd Calendar Month
|
Out-of-the-Money
|
15
|
15
|
|
In-the-Money
|
2
|
2
|
|
1st Quarter Month
|
Out-of-the-Money
|
10
|
10
|
|
In-the-Money
|
2
|
2
|
|
2nd Quarter Month
|
Out-of-the-Money
|
10
|
10
|
|
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
|
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
|
|
1st, 2nd, 3rd, 4th calendar
|
1-750 points
|
Max (40 points, 20% of bid)
|
|
> 750 points
|
150 points
|
|
1st ,2nd quarter
|
1-750 points
|
Max (60 points, 30% of bid)
|
|
> 750 points
|
225 points
|
|
3rd quarter
|
1-750 points
|
Max (80 points, 40% of bid)
|
|
> 750 points
|
300 points
|
For Mini-HSI Options:
|
Month
|
Price
|
Max. bid/offer spread
|
|
1st, 2nd calendar
|
1-750 points
|
Max (40 points, 20% of bid)
|
|
> 750 points
|
150 points
|
|
1st quarter
|
1-750 points
|
Max (60 points, 30% of bid)
|
|
> 750 points
|
225 points
|
|
2nd quarter
|
1-750 points
|
Max (60 points, 30% of bid)
|
|
> 750 points
|
225 points
|
|
|
Minimum Quote Size
|
For HSI Options and HSCEI Options
|
Month
|
Min. Quote Size
|
|
1st, 2nd, 3rd, 4th calendar
|
3 contracts
|
|
1st ,2nd, 3rd quarter
|
2 contracts
|
For Mini-HSI Options
|
Month
|
Min. Quote Size
|
|
1st, 2nd calendar
|
3 contracts
|
|
1st ,2ndquarter
|
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
|
|
In-the-Money
|
2
|
2
|
|
2ndCalendar Month
|
Out-of-the-Money
|
15
|
15
|
|
In-the-Money
|
2
|
2
|
|
3rdCalendar Month
|
Out-of-the-Money
|
15
|
15
|
|
In-the-Money
|
2
|
2
|
|
4th Calendar Month
|
Out-of-the-Money
|
10
|
10
|
|
In-the-Money
|
2
|
2
|
|
1st Quarter Month
|
Out-of-the-Money
|
10
|
10
|
|
In-the-Money
|
2
|
2
|
|
2nd Quarter Month
|
Out-of-the-Money
|
10
|
10
|
|
In-the-Money
|
2
|
2
|
|
3rd Quarter Month
|
Out-of-the-Money
|
10
|
10
|
|
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
|
|
In-the-Money
|
2
|
2
|
|
2nd Calendar Month
|
Out-of-the-Money
|
15
|
15
|
|
In-the-Money
|
2
|
2
|
|
1st Quarter Month
|
Out-of-the-Money
|
10
|
10
|
|
In-the-Money
|
2
|
2
|
|
2nd Quarter Month
|
Out-of-the-Money
|
10
|
10
|
|
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
|
|
Nearest ITM
|
2
|
2
|
|
Next Week
|
Nearest OTM
|
14
|
14
|
|
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 Stock Index Futures
The minimum CQ obligations for each product and applicable LP types are as follows:
|
|
CQ Obligations
|
LP Quota
|
|
Products
|
LP Type
|
Assigned Contract Months
|
Minimum Quote Quantity
(contracts)
|
Minimum % Trading Hours Coverage
in T or T+1 Session
|
Maximum Bid/Offer Spread
i.e. Higher of (a) and (b):
|
|
(a) No. of index points
|
(b) Percentage of bid price
|
|
MXJ
|
Type 1
|
Nearest 5 calendar quarter months
|
15
|
70% (T)
|
n/a
|
1st quarter: 0.15%; others: 0.4%
|
1
|
|
Type 1
|
Nearest 5 calendar quarter months
|
15
|
50% (T+1)
|
n/a
|
1st quarter: 0.15%; others: 0.4%
|
1
|
Incentives
- Trading fee discount, cross-product trading fee rebate, market date fee rebate, hosting services fee rebate and OAPI sub- license fee wavier
Liquidity Providers Obligations and Incentives of Hang Seng TECH Index Futures
|
Contracts
|
Assigned Contract Months
|
Minimum % Trading Hours
(T session)
|
Maximum Bid/Offer Spread
|
Minimum Quote Quantity
(contracts)
|
|
HS TECH Index Futures
|
Spot Month
|
65%
|
10 ticks*
|
5
|
* Not obligated to quote spot month contract on Last Trading Day
Incentives
- Trading fee discount, cross-product trading fee rebate, market date fee rebate, hosting services fee rebate 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% |
* Not obligated to quote spot month contract on Last Trading Day
Table 1 (Options series selection pool)
|
Contract Month
|
Option Series
|
Series for selection
|
|
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
|
|
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
|
|
More than 750 points
|
150 points
|
Incentives
- Trading fee discount, cross-product trading fee rebate, market date fee rebate, hosting services fee rebate and OAPI sub- license fee wavier
Liquidity Providers Obligations and Incentives of MSCI Asia and Emerging Markets Index Futures
Type 1 (T session)
|
Contracts
|
Assigned Contract Months
|
Minimum % Trading Hours
(T session)
|
Maximum Bid/Offer Spread
|
Minimum Quote Quantity
(contracts)
|
|
MSCI Taiwan (USD) Index Futures
|
Spot Month
|
70%
|
0.30% of bid price
|
5
|
|
Nearest First Calendar Quarter Month
|
0.30% of bid price
|
20
|
|
MSCI Taiwan Net Total Return (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
70%
|
0.38% of bid price
|
20
|
|
MSCI Japan Net Total Return (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
70%
|
0.20% of bid price
|
20
|
|
MSCI India Net Total Return (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
70%
|
0.50% of bid price
|
5
|
|
MSCI China Free Net Total Return (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
70%
|
0.20% of bid price
|
10
|
|
MSCI Indonesia Net Total Return (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
70%
|
0.60% of bid price
|
10
|
|
MSCI Australia Net Total Return (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
70%
|
0.25% of bid price
|
15
|
|
MSCI Thailand Net Total Return (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
70%
|
0.45% of bid price
|
15
|
|
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
|
|
MSCI Singapore Net Total Return (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
70%
|
0.45% of bid price
|
5
|
|
MSCI Vietnam Net Total Return (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
70%
|
0.85% of bid price
|
5
|
|
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 Indonesia Index (USD) Futures
|
Nearest First Calendar Quarter Month
|
70%
|
0.70% of bid price
|
10
|
|
MSCI Emerging Markets Net Total Return (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
70%
|
0.15% of bid price
|
20
|
|
MSCI Emerging Markets (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
70%
|
0.15% of bid price
|
20
|
|
MSCI India (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
70%
|
0.40% of bid price
|
5
|
|
MSCI China Free (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
70%
|
0.35% of bid price
|
10
|
|
MSCI Thailand (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
70%
|
0.50% of bid price
|
20
|
|
MSCI Malaysia (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
70%
|
0.50% of bid price
|
5
|
|
MSCI Philippines (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
70%
|
0.95% of bid price
|
5
|
|
MSCI Vietnam (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
70%
|
1.00% of bid price
|
5
|
| MSCI Taiwan 25/50 (USD) Index Futures |
Spot Month |
70% |
0.35% of bid price |
5 |
| Nearest First Calendar Quarter Month |
70% |
0.35% of bid price |
10 |
| MSCI Taiwan 25/50 (USD) Net Total Return Index Futures |
Nearest First Calendar Quarter Month |
70% |
0.43% of bid price |
20 |
|
MSCI Singapore Free (SGD) Index Futures
|
Spot Month
|
70%
|
0.35% of bid price
|
5
|
|
Nearest First Calendar Quarter Month
|
0.30% of bid price
|
10
|
|
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
|
Type 1 (T+1 Session)
|
Contracts
|
Assigned Contract Months
|
Minimum % Trading Hours (T+1 session)
|
Maximum Bid/Offer Spread
|
Minimum Quote Quantity
(contracts)
|
|
MSCI Taiwan (USD) Index Futures
|
Spot Month
|
50%
|
0.30% of bid price
|
5
|
|
Nearest First Calendar Quarter Month
|
0.30% of bid price
|
20
|
|
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 China Free Net Total Return (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
50%
|
0.25% of bid price
|
10
|
|
MSCI Indonesia Net Total Return (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
50%
|
0.60% of bid price
|
10
|
|
MSCI Australia Net Total Return (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
50%
|
0.25% of bid price
|
15
|
|
MSCI EM Asia Net Total Return (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
50%
|
0.18% of bid price
|
15
|
|
MSCI Singapore Net Total Return (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
50%
|
0.45% of bid price
|
5
|
|
MSCI Indonesia Index (USD) Futures
|
Nearest First Calendar Quarter Month
|
50%
|
0.70% of bid price
|
10
|
|
MSCI Emerging Markets Net Total Return (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
50%
|
0.15% of bid price
|
20
|
|
MSCI India (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
50%
|
0.35% of bid price
|
5
|
|
MSCI China Free (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
50%
|
0.35% of bid price
|
10
|
| MSCI Taiwan 25/50 (USD) Index Futures |
Spot Month |
50% |
0.35% of bid price |
5 |
| Nearest First Calendar Quarter Mont |
50% |
0.35% of bid price |
20 |
| MSCI Taiwan 25/50 (USD) Net Total Return Index Futures |
Nearest First Calendar Quarter Month |
50% |
0.43% of bid price |
20 |
|
MSCI Singapore Free (SGD) Index Futures
|
Spot Month
|
50%
|
0.35% of bid price
|
5
|
|
Nearest First Calendar Quarter Month
|
0.30% of bid price
|
10
|
Type 2 ( T Session)
|
Products
|
Assigned Contract Months
|
Minimum % Trading Hours
(T Session)
|
Maximum Bid/Offer Spread
|
Minimum Quote Quantity
(contracts)
|
|
MSCI Taiwan (USD) Index Futures
|
Spot
|
70%
|
0.08% of bid price
|
5
|
|
Next Calendar Month
|
0.125% of bid price
|
5
|
|
MSCI Singapore Free (SGD) Index Futures
|
Spot
|
70%
|
0.05% of bid price
|
5
|
|
Next Calendar Month
|
0.10% of bid price
|
5
|
| MSCI China Free Net Total Return (USD) Inx Futures |
Nearest First Calendar Quarter Month |
70% |
0.20% of bid price |
5 |
|
MSCI India Net Total Return (USD) Index Futures
|
Nearest First Calendar Quarter Month
|
70%
|
0.22% of bid price
|
5
|
| MSCI EM Asia Net Total Return (USD) Index Futures |
Nearest First Calendar Quarter Month |
70% |
0.17% of bid price |
5 |
| MSCI Taiwan 25/50 (USD) Index Futures |
Spot |
70% |
20 ticks |
5 |
| Next Calendar Month |
70% |
30 ticks |
5 |
| MSCI Taiwan 25/50 (USD) Index Futures Calendar Spread |
Spot/Next Calendar Month |
70% |
2 ticks |
5 |
| MSCI Taiwan (USD) Index Futures Calendar Spread |
Spot/Next Calendar Month |
70% |
2 ticks |
5 |
Type 3 (T Session)
|
Products
|
Assigned Contract Months
|
Minimum % Trading Hours
(T Session)
|
Maximum Bid/Offer Spread
|
Minimum Quote Quantity
(contracts)
|
|
MSCI Taiwan 25/50 (USD) Index Futures
|
Spot
|
70%
|
9 ticks
|
10
|
|
Next Calendar Month
|
15 ticks
|
5
|
Type 4 (T and T+1 Session)
| Product |
Trading Session |
Assigned Contract Months |
Minimum % Trading Hours |
Maximum Bid/Offer Spread |
Minimum Quote Quantity (contracts) |
| MSCI Taiwan (USD) Index Futures |
T Session |
Spot |
70% |
2 ticks |
2 |
| Next Calendar Month |
4 ticks |
2 |
| T+1 Session |
Spot |
50% |
4 ticks |
2 |
| Next Calendar Month |
6 ticks |
2 |
Incentives for MSCI Asia and Emerging Market Index Futures (Type 1 and Type 2)
- Discounted trading fee of USD 0.3 for USD contracts
- HK$25,000 per contract per trading session per month
- 1 OAPI licence fee waiver per contract
- Bundled fee rebates on HSI Futures and HSCEI Futures on 1:1 volume traded basis in aggregated volume of designated contracts ( Please refer circular for details)
Incentives for MSCI Asia and Emerging Market Index Futures (Type 3)
- Discounted trading fee of USD 0.3 for USD contracts
- HK$300,000 per contract per trading session per month
- 1 OAPI licence fee waiver per contract
- Bundled fee rebates on HSI Futures and HSCEI Futures on 1:1 volume traded basis in aggregated volume of designated contracts ( Please refer circular for details)
Incentives for MSCI Asia and Emerging Market Index Futures (Type 4)
- Discounted trading fee of USD 0.3 for USD contracts
- Cash incentive of HK$ 1.6 million in total for six-month program
- 1 OAPI licence fee waiver per contract
- 100% trading fee rebate on Hang Seng TECH Index Futures on a 1:1 volume cleared basis according to the monthly aggregated volume of the designed contracts
- Bundled fee rebates on HSI Futures and HSCEI Futures on 1:1 volume traded basis in aggregated volume of designated contracts ( Please refer circular for details)
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
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
|
|
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
|
|
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 |
| 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 5 February 2021
to 25 February 2021
|
From 26 February 2021
to 30 March 2021 |
|
|
|
Liquidity Level
|
Minimum Quote Size
|
Liquidity Level
|
Minimum Quote Size
|
| iShares FTSE A50 China Index ETF |
A50 |
1 |
30 lots |
1 |
30 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 |
| BOC Hong Kong (Holdings) Limited |
BOC |
1 |
30 lots |
1 |
30 lots |
| Budweiser Brewing Company APAC Limited |
BUD |
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 |
1 |
30 lots |
| China Coal Energy Company Limited |
CCE |
1 |
30 lots |
1 |
30 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 |
1 |
30 lots |
1 |
30 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 |
2 |
15 lots |
2 |
15 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 |
| 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 |
2 |
15 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 |
1 |
30 lots |
1 |
30 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 |
2 |
15 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 |
| Galaxy Entertainment Group Limited |
GLX |
2 |
15 lots |
2 |
15 lots |
| Great Wall Motor Company Limited |
GWM |
1 |
30 lots |
1 |
30 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 |
| 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 |
| Lenovo Group Limited |
LEN |
1 |
30 lots |
1 |
30 lots |
|
Link Real Estate Investment Trust
|
LNK
|
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 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 |
| 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 |
| Ping An Healthcare and Technology Co., Ltd. |
PHT |
2 |
15 lots |
2 |
15 lots |
| PICC Property and Casualty Company Limited |
PIC |
1 |
30 lots |
1 |
30 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 |
| 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 |
| Standard Chartered PLC |
STC |
1 |
30 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 |
| China Vanke Co. Ltd. |
VNK |
1 |
30 lots |
2 |
15 lots |
| WH Group Limited |
WHG |
2 |
15 lots |
2 |
15 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 |
| Yanzhou Coal Mining Company Limited |
YZC |
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 |
| |
|
Call Series
|
Put Series
|
| Spot month |
Nearest Out-of-the-Money |
7 |
7 |
| Nearest In-the-Money |
2 |
2 |
| Second Calendar month |
Nearest Out-of-the-Money |
7 |
7 |
| Nearest In-the-Money |
2 |
2 |
| Third Calendar month |
Nearest Out-the-Money |
7 |
7 |
| Nearest In-of-the-Money |
2 |
2 |
| Fourth Calendar month |
Nearest Out-the-Money |
7 |
7 |
| Nearest In-of-the-Money |
2 |
2 |
| First Quarter month |
Nearest Out-the-Money |
7 |
7 |
| Nearest In-of-the-Money |
2 |
2 |
| Second Quarter month |
Nearest Out-the-Money |
7 |
7 |
| Nearest In-of-the-Money |
2 |
2 |
| Third Quarter month |
Nearest Out-the-Money |
7 |
7 |
| 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
|
|
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
|
|
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
|
|
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 and CNH Gold Futures
|
Obligations
|
USD & CNH Gold Futures
|
|
LP Type
|
2
|
3
|
|
CQ or QR
|
CQ
|
|
Contract Months
|
Any 2 of the following contracts:
Spot Month (M), M+1, M+2, the next Jun or the next Dec contracts
|
|
Max. Bid / Offer Spread
|
M: 8 ticks
Other months: 7 ticks
|
M: 5 ticks
Farthest month: 6 ticks
Other months: 4 ticks
|
|
Quote Size (contracts)
|
6
|
|
% of Trading Hours
|
40% (T or T+1)
|
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 and CNH Silver Futures
|
Obligations
|
USD & CNH Silver Futures
|
|
LP Type
|
2
|
3
|
|
CQ or QR
|
CQ
|
|
Contract Months
|
Any 2 of the following contracts:
M, M+1, M+2, the next Jun or the next Dec contracts
|
|
Max. Bid / Offer Spread
|
M: 20 ticks
M+1: 19 ticks
Farthest month: 20 ticks
Other months: 18 ticks
|
M: 19 ticks
M+1: 18 ticks
Farthest month: 18 ticks
Other months: 16 ticks
|
|
Quote Size (contracts)
|
10
|
5
|
|
% of Trading Hours
|
30% (T or T+1) and 50% of LTD
|
40% (T or T+1)
|
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.
Iron Ore Futures
|
Obligation
|
Iron Ore Futures
(Monthly Contracts)
|
|
LP Type
|
1
|
|
CQ or QR
|
CQ
|
|
Contract Months
|
Any 3 of the followings:
M, the next 5 contract months, next January, May or September
|
|
Max. Bid / Offer Spread
|
When Bid Price <$100
|
|
M and other months: 40 ticks
M+1, M+2: 35 ticks
|
|
When Bid Price >=$100
|
|
Additional 5 ticks added on all obligations above
|
|
Quote Size (contracts)
|
5
|
|
% of Trading Hours
|
50% (T)
|
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
|
1
|
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 |
|
5 ticks
|
3 ticks
|
4 ticks
|
5 ticks |
3 ticks |
4 ticks |
|
Other Months
|
Other Months |
|
6 ticks
|
4 ticks
|
4 ticks
|
6 ticks |
4 ticks |
4 ticks |
|
Quote Size (contracts)
|
10
|
10
|
10
|
10 |
10 |
10 |
|
% of Trading Hours
|
70% (T or T+1)
|
70% (T or T+1) |
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/2020/MKD_CMD_00820_E.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/MKD_CMD_001_21_EN.pdf
