Derivatives trading set over Easter holidays

Hong Kong Exchanges and Clearing (0388) plans to implement derivatives holiday trading in April to cover the Easter holidays starting on April 15.

HKEX's MSCI futures and options contracts will be the first batch of holiday trading products, the bourse announced yesterday, which includes the MSCI China A 50 Connect (USD) Index Futures launched last October.

The stock exchange says it has no plans to include Hong Kong dollar-denominated futures and options for holidays, such as products of the Hang Seng Index or single stocks.

International investors can trade non-HKD-denominated futures and options products on Hong Kong public holidays after the launch of the new arrangement, when the markets of their underlying securities may be open.

The stock exchange said it received 55 responses showing strong support for the measure after its consultation paper was released in November last year.

HKEX plans to hold a market readiness test in late February ahead of the launch of holiday trading, although it said the final schedule will be subject to market readiness and the participation rate in the readiness test, as well as regulatory approval.

"The introduction of Derivatives Holiday Trading is a major development for Hong Kong as the region's pre-eminent international risk management and derivatives trading center," said HKEX president and chief operating officer, Calvin Tai Chi-kin, adding that the measure will enhance its market microstructure and derivatives product ecosystem.