Hong Kong SFC to Increase of Position Limits for Exchange-Traded Derivatives (Futures & Options) on 3 Hong Kong Major Stock Indices by 2025 July with 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 May 2025 | Hong Kong
The Hong Kong Securities & Futures Commission (SFC) will increase position limits for exchange-traded derivatives (futures & options) on 3 Hong Kong major stock indices by 2025 July with 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 (30/4/25): “The Securities and Futures Commission (SFC) today published consultation conclusions on the proposed increases of position limits for exchange-traded derivatives based on the three major stock indices in Hong Kong (Note 1). Respondents to the consultation which ended on 28 March 2025 have shown strong support for the proposal, noting that the changes will facilitate market liquidity, hedging efficiency and further market growth. The SFC received a total of 25 submissions from both local and overseas market participants, including market makers, asset managers, industry associations and other stakeholders. The SFC will now proceed to implement the proposal after considering the feedback, the historical and potential market growth, as well as utilisation of the limits by market participants. To this end, it will amend the Securities and Futures (Contracts Limits and Reportable Positions) Rules, as well as the Guidance Note on Position Limits and Large Open Position Reporting Requirements. Subject to the legislative process, the new position limits are expected to take effect in July 2025.” Note 1 – Under the proposal, the position limits for the futures and options contracts of Hang Seng Index, Hang Seng China Enterprises Index and Hang Seng TECH Index will be increased by 50%, 108% and 43% respectively to 15,000, 25,000 and 30,000 position delta.
“ Hong Kong SFC to Increase of Position Limits for Exchange-Traded Derivatives (Futures & Options) on 3 Hong Kong Major Stock Indices by 2025 July with 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 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 – 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.”
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.
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