To meet the needs of retail investors with an interest in the Hong Kong stock market, the Hong Kong Futures Exchange (HKFE) has introduced a Mini-Hang Seng Index (Mini-HSI) futures contract since 9 October 2000.
To complement Mini-HSI futures, Mini-HSI option contracts was launched on 18 November 2002. The compact, Mini-HSI futures & option contracts are based on Hong Kong's benchmark Hang Seng Index (HSI), which is also the underlying index for the larger sized HSI futures & option contracts. The contract multiplier of the Mini-HSI futures & option contracts are HK$10.00 or one-fifth the size of the HSI futures & option contracts. Same as the HSI futures & option contracts, the settlement method for the mini contracts are cash settled.
Local retail investors who have less risk capital and lower hedging requirements will find the Mini-HSI futures and option contracts the most appropriate investment tools as well as hedging instruments for managing their market risk.
Advantages
Tailor-made for retail investors
The Mini-HSI futures & option contracts inherit the advantages of the larger sized HSI futures & option contracts but are tailored for individuals with limited risk capital. The smaller contract size allows experienced and novice investors alike to participate in the performance of the constituent stocks in the index in a graduated scale.
Low Costs
As the Mini-HSI futures & option contracts is one-fifth the size of the HSI futures & option contracts, the corresponding margin requirements and commission are much lower.
Margin Offset
One hundred per cent margin offset between Mini-HSI and HSI futures, and between Mini-HSI and HSI options allows for flexible investment management
Electronic Trading Platform
Like all other products traded on the Exchange, Mini-HSI futures & option contracts will be traded electronically on HKATS, where all orders are matched based on price and time priority. Bid, offer and transaction prices are disseminated in real-time to the public and providing the highest level of price and market transparency.
Clearing House Guarantee
Mini-HSI futures & option are registered, cleared and guaranteed by the HKFE Clearing Corporation (HKCC), a wholly-owned subsidiary of the HKFE. The HKCC acts as the counter-party to all open contracts, which effectively eliminates counter-party risks between its HKCC Participants. The HKCC guarantee does not cover an HKCC Participant's obligations to its clients. Investors should exercise due care and diligence when deciding through whom they will conduct business.
| Item | Contract Terms |
|---|---|
| Underlying Index | Hang Seng Index |
| HKATS Code | MHI |
| Contract Multiplier | HK$10 per index point |
| Minimum Fluctuation | One index point |
| Contract Months | Spot, next calendar month, & next two calendar quarter months |
| Pre-Market Opening Period | 8:45am - 9:15am & 12:30pm - 1:00 pm |
| Trading Hours | 9:15am - 12:00 noon & 1:00pm - 4:15pm & 5:00pm - 11:00pm* (Expiring contract month closes at 4:00 pm on the Last Trading Day) |
| Last Trading Day | The Business Day immediately preceding the last Business Day of the Contract Month |
| Final Settlement Price | The average of quotations taken at (i) five (5) minute intervals from five (5) minutes after the start of, and up to five (5) minutes before the end of, the Continuous Trading Session of SEHK; and (ii) the close of trading on SEHK on the Last Trading Day. |
* After-hours futures trading session commenced on 6 Jan 2014
Information can be obtained from Hong Kong Exchanges and Clearing Limited. Please go to website of Hong Kong Exchanges and Clearing Limited for latest information.
