HKEx Steps Up Promotion of CES 120 Futures In Advance Of Shanghai-Hong Kong Stock Connect
CES 120 Futures is the only futures contract based on an underlying index, namely the CES China 120 Index (CES 120), that tracks both Mainland China’s A-shares and China stocks listed in Hong Kong. CES 120 is one of the indices in the Cross Border Index Series introduced by China Exchanges Services Company Limited, a joint venture of HKEx, the Shanghai and Shenzhen stock exchanges engaging in the development of indices and products.
Liquidity Provider Programme
HKEx on 1 August also announced that SG Securities (HK) Limited is registered as a Liquidity Provider (LP) for the CES 120 Futures effective 1 August 2014, bringing the total number of LPs for CES 120 Futures to four.
The other three existing LPs include:
1. Flow Traders Asia PTE via ABN AMRO Clearing Hong Kong Ltd.
2. Optiver Trading Hong Kong Limited
3. Merrill Lynch Far East Ltd.
LPs are required to provide continuous two-sided quotes for at least five contracts in at least the first two contract months with a maximum bid / ask spread of 0.5 per cent of the best bid during at least 70 per cent of all trading hours.
Joint Promotional Programme
HKEx also plans to launch a joint promotional programme on CES120 futures to support Participants of the Hong Kong Futures Exchange (HKFE), a wholly-owned subsidiary of HKEx, to enhance CES 120 Futures trading knowledge of their staff and clients. The programme, which will be conducted from 1 October to 15 December 2014, will also familiarise brokers and their clients on using CES 120 Futures as a hedging tool for the China market with the upcoming Shanghai-Hong Kong Stock Connect.