Weekly Hang Seng TECH Index Options Set to Debut on HKEX

Hong Kong Exchanges and Clearing Limited (HKEX) has announced its intention to launch Weekly Hang Seng TECH Index Options on September 2, pending regulatory approval.

These options, which will expire every week, cater to investors needing to manage their positions in response to short-term risks and specific events. Two groups of weekly contracts will be available: a spot week and the following week.

To incentivize trading, HKEX will offer a market-wide 50 percent trading fee discount on the new contracts until further notice. Additionally, the Commission Levy will be waived for the first six months after trading begins.

HKEX has seen significant success with its Weekly Hang Seng Index Options and Weekly Hang Seng China Enterprises Index Options, launched in 2019. The average daily volume (ADV) for these options grew from around 6,000 contracts in 2020 to over 19,000 contracts this year.

The introduction of Weekly Hang Seng TECH Index Options, along with the upcoming launch of weekly stock options later this year, will expand HKEXs derivatives product offerings, particularly in short-dated options.

Since launching the Hang Seng TECH Index futures contracts in 2020, HKEXs Hang Seng TECH Index derivatives have become some of the most actively traded products. The ADV for these derivatives has risen from approximately 14,000 contracts in 2021 to over 116,000 contracts this year. Notably, the Hang Seng TECH Index Options reached a daily volume record of 31,577 contracts on May 3, 2024.

In 2023, HKEXs derivatives market set a record with an ADV of 1.35 million contracts, a 4 percent increase from the previous year. This growth has continued into 2024, with an ADV of 1.56 million contracts as of May 31, marking a 13 percent rise from the same period last year.