Hong Kong Exchanges and Clearing Limited (HKEx) will start trading CES China 120 Index (CES 120) futures on Monday, 12 August 2013, as it continues to expand its suite of Mainland China-related products.
The CES 120 was developed by China Exchanges Services Company Limited (CESC), a joint venture of HKEx, the Shanghai Stock Exchange and the Shenzhen Stock Exchange, to track the performance of the largest and most liquid China stocks listed in Mainland China and Hong Kong. It includes A shares, H shares and red chips, as well as shares of private enterprises from the Mainland that are incorporated elsewhere and listed in Hong Kong.
The CES 120 futures contract will be the world’s first exchange-listed derivatives product designed to provide a convenient, cost efficient and simultaneous exposure to leading China stocks from the Mainland and Hong Kong markets through a single exchange-traded futures contract that can be used for trading or hedging purposes. The contract will be an ideal risk management tool for institutions and individuals with the Mainland China-related equity exposure, including Exchange Traded Fund (ETF) market makers looking to hedge their positions in ETFs linked to Mainland China-related ETFs.
HKEx has organised several CES 120 futures product education seminars in Hong Kong, Singapore, Mainland China and London. More than 800 institutional and retail investors attended the seminars so far and HKEx is planning to conduct more educational events to reach out to investors in Hong Kong, other parts of Asia, the UK and the US.
Key Features of CES 120 Futures Contract
Contract Multiplier: |
$50 per whole index point |
Minimum Fluctuation: |
0.5 index point (or $25) |
Contract Months: |
Spot month, the next calendar month and the next two calendar quarter months (calendar quarter months are March, June, September and December) |
Trading Hours: |
9:15 am – 12 noon and 1 pm – 4:15 pm |
Trading Hours on LTD: |
9:15 am – 12 noon and 1 pm – 3:00 pm (HKT) Note: No afternoon trading on Christmas Eve, New Year’s Eve or Lunar New Year’s Eve |
Holiday Schedule: |
Hong Kong holiday schedule |
Block Trade Minimum: |
100 contracts |
Liquidity Providers: |
IMC Asia Pacific Ltd, Newedge Financial Hong Kong Ltd, Optiver Trading Hong Kong Ltd |
(Contract specifications, which have been approved by the Securities and Futures Commission, are attached below along with other additional information.)
Margin rates will be announced in due course.
Futures and options trading volume at HKEx rose 9.5 per cent in the first half of the year from the same period last year, and open interest at the end of June was 6,526,220 contracts, which was 6.7 per cent higher than a year ago.
Attachments
Contract Specifications of CES China 120 Index Futures
The following Contract Specifications shall apply to the CES China 120 Index Futures Contract:
Underlying Index/Index |
CES China 120 Index (the share price index of that name compiled, computed and disseminated by China Exchanges Services Company Limited) |
|
Contract Multiplier |
HK$50 per index point |
|
Contract Months |
Spot month, the next calendar month, and the next two calendar quarter months |
|
Minimum Fluctuation |
0.5 index point |
|
Maximum Fluctuation |
Nil |
|
Contracted Price |
The price at which a CES China 120 Index Futures Contract is registered by the Clearing House |
|
Contracted Value |
Contracted Price multiplied by the Contract Multiplier |
|
Position Limits |
30,000 contracts |
|
Large Open Positions |
1,500 contracts |
|
Trading Hours |
9:15 am – 12:00 noon and |
|
Trading Hours on Last Trading Day |
9:15 am – 12:00 noon and |
|
Trading Method |
The Exchange’s Automated Trading System (HKATS) |
|
Final Settlement Day |
The first Business Day after the Last Trading Day |
|
Settlement Method |
Cash (Hong Kong dollar) settled contract for difference |
|
Last Trading Day |
The Business Day immediately preceding the last Business Day of the Contract Month If it falls on a Mainland China public holiday, the Last Trading Day will be the preceding Business Day which is also a business day in Mainland China. |
|
Final Settlement Price |
The Final Settlement Price for CES China 120 Index Futures Contracts shall be a number, rounded up to the nearest 1 decimal place if the figure in the second decimal place is 5 or above and rounded down to the nearest 1 decimal place if it is below 5, determined by the Clearing House and shall be the average of the values of the CES China 120 Index compiled, computed and disseminated by China Exchanges Services Company Limited taken at five (5) minute intervals between 1:00 pm up to 3:00 pm on the Last Trading Day. The Chief Executive of the Exchange has the power under the Regulations for trading Stock Index Futures Contracts to determine the Final Settlement Price under certain circumstances. |
|
Trading Fee |
Exchange Fee HK$10.00 The amount indicated above is subject to change from time to time. |
|
Levies |
Commission Levy and Investor Compensation Levy are payable at the rate or of the amount prescribed from time to time pursuant to the Ordinance. Note: CES futures will be exempt from Commission Levy from 12 August 2013 to 11 February 2014 both dates inclusive |
|
Commission Rate |
Negotiable |
Information Vendor Codes for CES 120 and CES 120 Futures
|
Access Code |
|
CES 120 Index |
CES 120 Futures |
|
Bloomberg Finance LP |
CES120 |
CESA Index DES <GO> |
Reuters Limited, a Thomson Reuters Company |
.HKCES120 |
0#HCHH: |
AAStocks.com Limited |
110056 |
221360 |
AFE Solutions Ltd |
837501 |
870800 |
ET Net Limited |
CEC |
CHH / Index Futures Quotation |
Infocast Limited |
CE120 |
Menu |
SIX Financial Information Ltd |
CH20145957 or CES120 |
CHHym |
Telequote Data International Limited |
CES120 |
CHHmy |
Links to CES 120 Futures Information on HKEx Website
Links to CES 120 Information on CESC Website