HKEX to launch single stock options on Chinese toy firm

Available in contract size of 200 shares, the Hong Kong Exchanges and Clearing (HKEX) has set position limit for the new stock option class at 250,000 open contracts.

The bourse on Tuesday said trading in single stock options for January to August increased 29% on the previous year, with an average daily volume (ADV) of 863,627 contracts. Overall, the Hong Kong derivatives market has demonstrated robust performance with ADV hitting a record 1.66 million contracts for January to August, up 13% cent year-over-year, the trading venue said.

The exchange has invited applications for market-maker permits and made pre-launch arrangements for new stock option class to be implemented on October 10.

The Asian exchange group is upgrading its derivatives trading technology to enable new products.

Experts at the FOW Trading Asia event in Hong Kong said this month Asian exchanges and brokers have increased access to options in the hope of replicating the products' success in the US.

In August, the bourse’s head of markets, Gregory Yu said: “Short-dated options trading volume already accounts for 21% of total option trading at the exchange. All around the world, there is a more robust development in short cycle options – that is the direction.”