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Continuous Quotations in Selected Stock Options Classes
Two market makers, Timber Hill Securities Hong Kong and UBS Securities Hong Kong, will provide continuous quotations for not less than 30 contracts and 60 contracts in Tier 1 and Tier 2 Stock Options classes respectively (please see attached a list of all Stock Options and their respective tiers). In addition, the two firms will provide continuous quotations for not less than 12 assigned series in the following eight Stock Options classes:
Tier 1: HSBC Holdings, Sun Hung Kai Properties,
and Cheung Kong (Holdings)
Tier 2: BOC
Existing market makers' obligations will not be affected by these changes.
Reduced Tariffs for Tier 1 Stock Options Classes
- Tariffs will be reduced 40 per cent (from $5 to $3).
Narrower Strike Intervals in Selected Stock Options Classes
- Options on China Mobile (
- Interval Group B will be applied to all five expiry months for the Stock Options classes listed above. Interval Group B only applies now to the spot month and spot next expiry month.
- Strike intervals for options on stocks in Interval Group B which are priced between $100 and $200 will be narrowed by 50 per cent (from $5 to $2.50).
Under these new arrangements, about 400 new Stock Options series will be added and a total of more than 3,000 series will be available for trading.
"These measures will give market participants more choice and further strengthen our Stock Options market," Gerald Greiner, HKEx's Deputy Chief Operating Officer, said.
Stock Options Classes
|
Stock Exchange |
Underlying Stock |
Contract Size |
Options |
|
2600 |
Aluminum Corporation of China Ltd. (Chalco) |
2,000 |
2 |
|
23 |
Bank of East Asia, Ltd., The |
200 |
2 |
|
2388 |
BOC Hong Kong (Holdings) Ltd. |
500 |
2 |
|
941 |
China Mobile (Hong Kong) Ltd. |
500 |
1 |
|
762 |
China Unicom Ltd. |
2,000 |
2 |
|
267 |
CITIC Pacific Ltd. |
1,000 |
1 |
|
1 |
Cheung Kong (Holdings) Ltd. |
1,000 |
1 |
|
1038 |
Cheung Kong Infrastructure Holdings Ltd. |
1,000 |
1 |
|
2628 |
China Life Insurance Company Ltd. |
1,000 |
2 |
|
2 |
CLP Holdings Ltd. |
500 |
1 |
|
144 |
|
2,000 |
2 |
|
883 |
CNOOC Ltd. |
1,000 |
2 |
|
1199 |
Cosco Pacific Ltd. |
2,000 |
1 |
|
293 |
Cathay Pacific Airways Ltd. |
1,000 |
1 |
|
386 |
China Petroleum & Chemical Corporation (Sinopec) |
2,000 |
2 |
|
291 |
China Resources Enterprise, Ltd. |
2,000 |
1 |
|
728 |
China Telecom Corporation Ltd. |
2,000 |
2 |
|
6 |
Hongkong Electric Holdings Ltd. |
500 |
2 |
|
388 |
|
2,000 |
1 |
|
5 |
HSBC Holdings Plc. |
400 |
1 |
|
3 |
|
1,000 |
2 |
|
12 |
Henderson Land Development Co. Ltd. |
1,000 |
1 |
|
902 |
Huaneng Power International, Inc. |
2,000 |
2 |
|
11 |
Hang Seng Bank Ltd. |
100 |
2 |
|
13 |
Hutchison Whampoa Ltd. |
1,000 |
1 |
|
179 |
Johnson Electric Holdings Ltd. |
500 |
2 |
|
992 |
Lenovo Group Ltd. |
2,000 |
1 |
|
494 |
Li & Fung Ltd. |
2,000 |
1 |
|
66 |
MTR Corporation Ltd. |
500 |
2 |
|
17 |
New World Development Co. Ltd. |
1,000 |
1 |
|
8 |
PCCW Ltd. |
1,000 |
2 |
|
857 |
PetroChina Co. Ltd. |
2,000 |
2 |
|
16 |
Sun Hung Kai Properties Ltd. |
1,000 |
1 |
|
363 |
Shanghai Industrial Holdings Ltd., The |
1,000 |
1 |
|
19 |
Swire Pacific Ltd. 'A' |
500 |
1 |
|
2800 |
Tracker Fund of |
500 |
2 |
|
4 |
Wharf (Holdings) Ltd., The |
1,000 |
1 |
Intervals between strike prices for Stock Options, effective
|
Strike Price |
Interval Group A |
Interval Group B |
|
up to $2 |
$0.10 |
$0.10 |
|
$2 to $5 |
$0.20 |
$0.20 |
|
$5 to $10 |
$0.50 |
$0.50 |
|
$10 to $20 |
$1.00 |
$0.50 |
|
$20 to $50 |
$2.00 |
$1.00 |
|
$50 to $100 |
$5.00 |
$2.50 |
|
$100 to $200 |
$5.00 |
$2.50 |
|
$200 to $300 |
$10.00 |
$5.00 |
|
$300 to $500 |
$20.00 |
$20.00 |
Note: Change from current arrangements is in bold.
