The Hong Kong Futures Exchange Limited (HKFE), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), has received no-action relief from the US Commodity Futures Trading Commission (CFTC) which enables HKFE Exchange Participants (EPs) to offer and sell the exchange's mini futures contracts based on the Hang Seng Index (HSI) and the Hang Seng China Enterprises Index (HSCEI) in the US.
The contracts, known as Mini HSI futures and Mini H-shares Index futures, can be made available for trading through HKATS* terminals located in the US in accordance with the terms and conditions of the no-action letter issued by the CFTC in June 2000. Interested parties may refer to the website of the CFTC (www.cftc.gov) for details.
HKEx strives to make its products as accessible to as many investors as possible, and believes the markets for Mini futures contracts on the HSI and HSCEI benefit from enhanced liquidity with the participation of investors from overseas. Similar no-action relief was granted to futures contracts based on the HSI and HSCEI in June 1994 and October 2006 respectively.
The US is a major contributor to overseas investor trading in HKEx's derivatives market, accounting for 26 per cent, according to the latest Derivatives Market Transaction Survey conducted by HKEx (US investors comprise Americans and American firms located in the US or outside the country; for complete survey results, please see: http://www.hkex.com.hk/research/dmtrsur/DMTS08.pdf).
* All HKEx derivatives market trading is done through HKATS.