Hong Kong SFC Proposes Increase of Position Limits for Exchange-Traded Derivatives (Futures & Options) on 3 Hong Kong Major Stock Indices 1) Hang Seng Index 15,000 Position Delta, 2) Hang Seng China Enterprises Index 25,000 Position Delta & 3) Hang Seng TECH Index 30,000 Position Delta
1st March 2025 | Hong Kong
The Hong Kong Securities & Futures Commission (SFC) has released a consultation paper proposing an increase of position limits for exchange-traded derivatives (futures & options) on 3 Hong Kong major stock indices 1) Hang Seng Index 15,000 position delta, 2) Hang Seng China Enterprises Index 25,000 position delta & 3) Hang Seng TECH Index 30,000 position delta. Hong Kong SFC (27/2/25): “The Securities and Futures Commission (SFC) today launched a consultation proposing to increase the position limits for exchange-traded derivatives based on the three major stock indices in Hong Kong to keep pace with market development. To facilitate hedging activities of market participants, the proposals will lift the current position limits for the futures and options contracts by 50% to 15,000 position delta for Hang Seng Index, 108% to 25,000 position delta for Hang Seng China Enterprises Index, and 43% to 30,000 position delta for Hang Seng TECH Index (Note 1). These will enable Hong Kong’s derivatives markets to keep pace with the growth in the market capitalisations of major stock indices and trading volumes of their constituents over the past years, without introducing additional risks to the markets. The public is invited to comment on the SFC’s proposals by 28 March 2025 via its website (www.sfc.hk), by email to [email protected], by post or by fax to 2521 7917.”
“ Hong Kong SFC Proposes Increase of Position Limits for Exchange-Traded Derivatives (Futures & Options) on 3 Hong Kong Major Stock Indices 1) Hang Seng Index 15,000 Position Delta, 2) Hang Seng China Enterprises Index 25,000 Position Delta & 3) Hang Seng TECH Index 30,000 Position Delta “
Julia Leung, Hong Kong SFC CEO: “The relaxation of position limits will not only allow market participants to enjoy greater flexibility in managing positions, but also promote the liquidity and efficiency of both the derivatives and broader markets. We believe the proposal will help bolster the Hong Kong financial market’s competitiveness while striking the right balance by maintaining a robust regulatory framework to manage systemic risks.”
Note:
- For futures and options contracts, delta is the ratio of their theoretical price change against the change in price of the underlying asset. A futures contract has a fixed delta value of 1, whereas an options contract has a variable delta value between 0 and 1.
Hong Kong SFC Proposes Increase of Position Limits for Exchange-Traded Derivatives (Futures & Options) on 3 Hong Kong Major Stock Indices 1) Hang Seng Index 15,000 Position Delta, 2) Hang Seng China Enterprises Index 25,000 Position Delta & 3) Hang Seng TECH Index 30,000 Position Delta
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