Hong Kong Exchange Launches MSCI Index Futures Contract


HKEX (Hong Kong Exchanges and Clearing) has launched new batch for futures contracts based on the MSCI Asia and Emerging Markets Index.

04 August, 2020 | AtoZ Markets – HKEX is a publicly-traded holding company in Hong Kong. Its financial hubs are in Hong Kong and London. It also offers trading and clearing services of securities and derivatives includes stocks, commodities, bonds, currency.

HKEX Partners With MSCI for Regional Index Futures

In May, HKEX signed a licensing agreement with Morgan Stanley Capital International (MSCI) to launch 37 futures and options contracts after receiving regulatory approval. Though, the agreement is based on the MSCI All Country Asia (excluding Japan) Index, which also covers 11 Asian stock markets including China, Hong Kong, India, Malaysia, Philippines, South Korea and Taiwan. Moreover, Charles Li, HKEX Chief Executive, said:

“This agreement with MSCI comes at a time when Hong Kong’s derivatives market is going from strength to strength and represents another significant development in continuing to build the breadth, depth and attractiveness of Hong Kong’s vibrant financial markets.”

HKEX Launches Second Batch of Index Futures Contracts

HKEX first launched 17 futures contracts index in early July. Yesterday, eight new US dollar-denominated MSCI index futures contract were also successfully listed on the Hong Kong exchange derivatives market. However, this initiative aims to expand the offering of derivative products on the HKEX and broader emerging markets in Hong Kong and Asia. Moreover, the list of US dollar-denominated MSCI index futures contracts launched yesterday is given below:

  1. MSCI China Free (USD) Index Futures
  2. MSCI India (USD) Index Futures
  3. MSCI Malaysia (USD) Index Futures
  4. MSCI New Zealand Net Total Return (USD) Index Futures
  5. MSCI Philippines (USD) Index Futures
  6. MSCI Singapore Free Net Total Return (USD) Index Futures
  7. MSCI Thailand (USD) Index Futures
  8. MSCI Vietnam (USD) Index Futures

The next contract is due for release on August 17, but the final four contracts are still pending regulatory approval. Moreover, the full set of new MSCI derivatives will be available by the end of this year. HKEX also said, “We have introduced incentive programs for liquidity providers, proprietary traders and block trade participants to support the liquidity development of the futures contracts. Besides, the Commission Levy charged by the Securities and Futures Commission will be exempted for the first six months of trading.”

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