Hong Kong Futures Exchange: Optimization measures to narrow the exercise price interval for “Weekly Index Options” will take effect from July 27

The Zhitong Finance App learned that on July 20, the Hong Kong Futures Exchange issued a notice stating that the Hong Kong Securities Regulatory Commission has approved optimization measures to narrow the strike price interval. The measures will take effect from July 27 (next Monday).

On June 25, the Hong Kong Futures Exchange issued a notice to narrow the exercise price interval for weekly Hang Seng Index options, weekly China Enterprise Index options, and weekly Hang Seng Technology Index options (collectively, “Weekly Index Options”). According to the notice, the Hong Kong Futures Exchange plans to narrow the exercise price interval for “Weekly Index Options”. Under the new arrangement, the narrowed strike price interval will apply to all per-cycle option contracts, while the existing strike price interval will continue to apply to monthly stock options and index options.

According to the contract rules for weekly index options, if the expiration date of the weekly contract is the same as the expiration date of the current month contract, the weekly contract due will not be listed. In this case, the monthly contract will continue to use the wider strike price interval set out in the contract details for the monthly contract. In this case, only strike prices based on wider spacing configurations can be traded.

The Hong Kong Futures Exchange advises that exchange participants should ensure that their trading and back-office systems are ready to ensure smooth operation when the above optimization measures are implemented. At the same time, the staff of exchange participants should carefully handle the trading of relevant weekly index options and provide advice to customers.