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The Securities and Futures Commission (SFC) today published consultation conclusions on the proposed increases of position limits for exchange-traded derivatives based on the three major stock indices in Hong Kong (Note 1).
Respondents to the consultation which ended on 28 March 2025 have shown strong support for the proposal, noting that the changes will facilitate market liquidity, hedging efficiency and further market growth. The SFC received a total of 25 submissions from both local and overseas market participants, including market makers, asset managers, industry associations and other stakeholders.
The SFC will now proceed to implement the proposal after considering the feedback, the historical and potential market growth, as well as utilisation of the limits by market participants. To this end, it will amend the Securities and Futures (Contracts Limits and Reportable Positions) Rules, as well as the Guidance Note on Position Limits and Large Open Position Reporting Requirements.
"The SFC is committed to fostering an adaptive and robust regulatory framework that not only safeguards the integrity of our financial markets but also supports their developments,” said Mr Rico Leung, the SFC’s Executive Director of Supervision of Markets. “The enhancements will reinforce Hong Kong's position as a leading global risk management centre; in parallel, we will maintain vigilant oversight and rigorous monitoring of our market operations."
Subject to the legislative process, the new position limits are expected to take effect in July 2025.
Note:
- Under the proposal, the position limits for the futures and options contracts of Hang Seng Index, Hang Seng China Enterprises Index and Hang Seng TECH Index will be increased by 50%, 108% and 43% respectively to 15,000, 25,000 and 30,000 position delta.
