HKEX (00388.HK) to Launch Weekly HSTECH Options on 2 Sep

　　HKEX (00388.HK) -4.400 (-1.719%) Short selling $298.17M; Ratio 23.737% announced the introduction of weekly HSTECH options on 2 September, subject to regulatory approval.

　　Weekly HSTECH options are standard, cash-settled options that expire every week, with two groups of weekly contracts, a spot week and next week, to be offered. Except for weekly settlement, weekly HSTECH options are no different from normal cash-settled options contracts, and are designed as tools for investors to manage their positions in response to short-term risks and specific events.

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　　HKEX will apply a market-wide 50% trading fee discount on the new contracts until further notice. The SFC Levy will also be waived for the first six months upon the commencement of trading.

　　HKEX noted that it has successfully launched weekly HSI and HSCEI options in 2019, with average daily volume (ADV) growing from about 6,000 contracts in 2020 to over 19,000 contracts so far this year. The launch of weekly HSTECH options and the planned launch of weekly stock options later this year further enrich HKEXs suite of derivatives products, and support its offering of short-dated options.

　　HKEXs HSTECH derivatives product suite has become one of the most actively traded products since the launch of the futures contracts in 2020, with ADV growing from about 14,000 contracts in 2021 to over 116,000 contracts so far this year.