HKEx to offer international stock futures/options

The Hong Kong Exchanges and Clearing (HKEx) plans to introduce 20 international stock futures and 20 international stock options contracts, which are due to start trading on October 4, subject to approval from the Securities and Futures Commission (SFC).

The new contracts will trade alongside the HKEx’s 33 existing stock futures and options contracts, which are based on Hong Kong-listed companies. The underlying stocks chosen for the international futures and options are listed in Japan, South Korea, Taiwan and the US. The stocks were chosen for their liquidity, market capitalisation and public profile, and include names like Microsoft, NTT DoCoMo, Samsung Electronics and Taiwan Semiconductor Manufacturing.Frederick Grede, Hong Kong Futures Exchange chief executive and HKEx chief operating officer, said: “With our international stock futures and options, investors will have access to futures and options based on leading stocks from Asia and the US in one convenient market-place.”

The new futures contracts are standard cash-settled stock futures, while the options are European-style cash-settled options.

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