| Underlying Index |
Hang Seng Index (Compiled, computed and disseminated
by HSI Services Ltd)* |
| Contract Multiplier |
HK$50 per index point* |
| Contract Months |
(For short-dated options) spot month, the next
two calendar months, the next three calendar quarterly months (March, June,
September, and December) and (for long-dated options) the next two months
of June and December (see Note 1) |
| Contracted Value |
Option premium multiplied by the contract multiplier |
| Minimum Fluctuation |
One index point |
| Position Limits |
Position delta for Mini-Hang Seng Index Futures,
Hang Seng Index Futures and Hang Seng Index Options combined of 10,000 long
or short in all Contract Months combined provided the position delta for
Mini-Hang Seng Index Futures shall not at any time exceed 2,000 long or
short in all Contract Months combined. For this purpose, the position delta
of one Mini-Hang Seng Index Futures Contract will have a value of 0.2 |
| Large Open Positions |
500 contracts in any
one series per Exchange Participant for the Exchange Participant's own behalf;
and 500 contracts in any one series per each client.
(Note: On 29 August 1998 the Exchange imposed temporary measures to
adopt a large open position level of 250 contracts for HSI options, in connection
with prevailing market conditions. The Exchange will advise the public if
these measures cease to be effective, or are made permanent. Please also
contact your broker about this matter.) |
| Option Premium |
Option premium is quoted in whole index points |
| Cabinet Bids |
HK$10.00 per contract to include all applicable
fees and levies |
| Strike Prices |
For short-dated options,
strike prices shall be set as follows: (i) at intervals of 50 index points
at strike prices below 2,000 index points; (ii) at intervals of 100 index
points at strike prices at or above 2,000 index points but below 8,000 index
points, and (iii) at intervals of 200 index points at strike prices at or
above 8,000 index points.
For long-dated options,
strike prices shall be set at approximately 5% above, at and 5% below
the previous day's closing price of the HSI at the time of options introduction
for trading, rounded down to the nearest multiple of 50 index points with
the strike prices below 2,000 index points, 100 index points with the
strike prices at or above 2,000 index points but below 8,000 index points,
and 200 index points with the strike prices at or above 8,000 index points.
For both short- and
long-dated options, strike prices shall be set on a temporary basis at
other intervals as may from time to time be determined by the Chief Executive
in consultation with the Commission or at other intervals as may from
time to time be determined by the Board in consultation with the Commission.
The Exchange reserves the right to introduce new strike prices at any
time.
|
Trading Hours
(Hong Kong time) |
9:45 a.m. - 12:30 p.m. (first trading session)
2:30 p.m. - 4:15 p.m. (second trading session) |
Trading Hours on Expiry Day
(Hong Kong time) |
9:45 a.m. - 12:30 p.m. (first trading session)
2:30 p.m. - 4:00 p.m.# (second trading session)
# The closing time shall
be adjusted automatically to correspond with the closing time of the underlying
cash market, as it may be set from time to time.
|
| Trading Method |
Electronic order matching through the automated
trading system |
Exercise Style
(European) |
Options may only be exercised at expiration |
| Settlement on Exercise |
Cash settlement |
| Expiry Day |
The business day immediately
preceding the last business day of the contract month |
| Final Settlement Day |
Business day immediately following expiry day |
| Official Settlement Price |
The official settlement
price for Hang Seng Index options shall be a number, rounded down to the
nearest whole number, declared by the Clearing House and shall be the average
of the quotations of the Hang Seng Index taken at five-minute intervals
during the expiry day.* |
Trading
Fees & Levies**
(per contract per side) |
| Exchange Fee (which includes an HKFE development
fund fee of HK$0.50) |
HK$10.00 |
| Securities and Futures Commission levy |
HK$1.00 |
| Compensation fund levy |
HK$ 0.50
|
| Total |
HK$11.50 |
|
| Exercise
Fees** |
A fee of HK$10.00 will be charged by the Exchange
for each option contract exercised. Option contracts not exercised shall
be deemed to have expired worthless and will not be assessed an exercise
fee. |
Minimum
Commission
(per contract per side) |
Before 1 April 2003
Minimum commission will be payable on all trades
and will be set at the lesser of:-
- 1% of the contracted value rounded up to the
nearest Hong Kong dollar with a minimum of HK$30; and
- HK$100
Options that
are designate Cabinet Bids shall not attract a Minimum Commission as they
have no Contracted Value
On or after 1 April 2003
Negotiable
|
