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HKEX Publishes Consultation Paper On Operational Model For Derivatives Holiday Trading – Exchange News Direct

  • HKEX to introduce non-HKD denominated futures and options trading and clearing on Hong Kong public holidays (except New Year’s Day)
  • Proposal supports Hong Kong’s competitive standing as Asia’s premier derivatives trading market


Hong Kong Exchanges and Clearing Limited (HKEX) today (Tuesday) published a Consultation Paper on the proposed operational model for non-Hong Kong Dollar (HKD) denominated futures and options trading and clearing services on Hong Kong public holidays (Derivatives Holiday Trading).

HKEX President and Chief Operating Officer Calvin Tai said: “The launch of Derivatives Holiday Trading will reinforce Hong Kong’s competitiveness as an international risk management centre, enabling investors to actively manage their derivatives portfolios during Hong Kong holidays, when the markets of their underlying securities may be open. This proposal is part of HKEX’s ongoing commitment to enhance Hong Kong’s market microstructure to support the needs of global investors and if adopted, we believe will prove very attractive to HKEX customers around the world.”

Participation in Derivatives Holiday Trading will be optional, with Exchange Participants classified as either Holiday Trading Participants or non-Holiday Trading Participants, according to the proposal. Similarly, products will be classified as either Holiday Trading Products or non-Holiday Trading Products. HKEX proposes to only allow Holiday Trading Participants access to Holiday Trading Products, even on regular business days so as to ensure clarity and transparency to the market.

As Asia’s premier derivatives trading market, HKEX offers a broad range of equity, commodity, interest rate and foreign exchange derivatives that are denominated in HKD and other currencies.  The underlying securities of many non-HKD denominated derivatives are traded outside Hong Kong, and during local Hong Kong holidays, the markets where these securities are listed are likely to be open.

The ability to trade these non-HKD denominated derivatives on Hong Kong holidays is a key consideration for international investors when evaluating the suitability of a location for building and managing their portfolios.

Subject to market feedback received and regulatory approval, HKEX aims to launch Derivatives Holiday Trading in April 2022, with a readiness test or market rehearsal to be held in the first quarter of 2022.

HKEX invites market feedback on the proposed format for Derivatives Holiday Trading in the Consultation Paper, which is available on the HKEX website. The deadline for responding is 6 December 2021.