Hong Kong Exchanges and Clearing Limited (HKEX) has unveiled its plans to launch weekly single stock options for 10 Hong Kong-listed equities.
HKEX plans to launch these new weekly expiries by the end of 2024, subject to market readiness and regulatory approval.
HKEX Head of Equities Product Development, Brian Roberts, said:
“We are delighted to be introducing weekly stock options in our growing product ecosystem. The new additions will add to the attractiveness and diversity of our derivatives market, further supporting investors’ risk management needs. At HKEX, we are committed to continuously enhancing our product lineup and further developing our markets, reinforcing Hong Kong’s position as Asia’s leading derivatives trading and risk management hub.”
Weekly stock options will be additional expiries for existing single stock option contracts, supporting the trading needs of investors and optimising their risk management capabilities. The contracts can be used to manage positions in response to short-term or specific events such as corporate results. With their shorter time to maturity, they have relatively low option premiums.
The launch of weekly stock options complements HKEX’s suite of weekly index options, which were introduced in 2019 with the Hang Seng Index and Hang Seng China Enterprises Index. Since then, weekly options have become one of the fastest-growing product types. The average daily volumes (ADV) of Weekly Hang Seng Index Options quadrupled from 3,380 contracts in 2019 to 12,948 contracts in 2023, accounting for about 31 per cent of total volumes of the Hang Seng Index Options product suite.
HKEX’s derivatives market set a record ADV of 1.35 million contracts in 2023, up 4 per cent from a year earlier. This momentum has continued into 2024, with ADV of 1.50 million contracts in the first quarter.
