HKEX plans to offer derivatives trading in some products on public holidays

Hong Kong Exchanges and Clearing (HKEX) has issued a new consultation paper on its plan to offer futures and options trading of non-Hong Kong dollar-denominated products on public holidays in the city, as well as extended trading of these products from a half day to a full day on Christmas Eve, New Year’s Eve and the eve of Lunar New Year. The only exception will be New Year’s Day.

The consultation will bring the Hong Kong stock exchange in line with other markets globally and comes after it began offering 38 futures and options contracts this year tied to MSCI’s Asia and emerging markets focused indices – many of which cover regional and global stock markets outside the city. Many of those MSCI products were traded in Singapore for more than two decades before moving to Hong Kong this year.

“To ensure Hong Kong retains its competitiveness as a financial hub, and to allow investors to better manage or lower their overall risk portfolio, it is essential that they have the ability to trade and clear non-[Hong Kong dollar] denominated products when the markets of their underlying securities are open,” HKEX said in its consultation paper on Tuesday. “That means without being bound by Hong Kong public holidays.”