The Hong Kong Exchanges and Clearing Limited Publishes its Conclusion on Recent Position Limit Consultation

The Hong Kong Exchanges and Clearing Limited Publishes its Conclusion on Recent Position Limit Consultation

The Hong Kong Exchanges and Clearing Limited (HKEX) published yesterday (28.07.2022) conclusions to its consultation on the revision of its position limit regime. More specifically, the HKEX decided that:

1. two additional tiers (i.e., 200,000 and 250,000 contracts) will be introduced to the existing 3-tier Single Stock Options (SSO) position limit model (i.e., 50,000, 100,000, 150,000 contracts);
2. the existing 5,000 contracts per expiry month Single Stock Futures (SSF) position limit model will be revised to a 5-tier model with net position limits (i.e., 5,000, 10,000, 15,000, 20,000, and 25,000 contracts). A single contract month limit with two times the net position limit for all contract months combined will also be imposed and;
3. the additional position limits that apply to flagship-minis contracts will be removed.

The effective date of the position limits’ amendments will be announced in due course.