On Sep. 12, HKEX updated the large open position reporting form.
HKEX said weekly stock options will start trading for selected classes on Nov. 4, 2024.
Released an updated large open position (LOP) reporting form, with contract month field length extended from 6 to 9 characters; all other fields remain unchanged.
This is to facilitate the reporting of open positions for weekly stock options expiries.
Options exchange participants shall refer to LOP report specification for monthly, weekly expiries; those without reportable positions can continue using existing form.
Updated margin calculation methods, including intra-commodity spread charges.
Position limits and reporting requirements have also been adapted for weekly expiries.
Market participants are to review and enhance operational procedures, as well as ensure client awareness of automatic exercise possibilities for weekly options.
Amendments to the rules and procedures will come into effect on Nov. 4, 2024.
Oct. 4, 2024 Testing Schedule
On Oct. 4, 2024, HKEX reminded exchange participants (EPs), clearing participants (CPs) must complete testing in the HKATS/DCASS testing environments by Oct. 25.
A practice session is scheduled for Oct. 19; CPs have to submit confirmation form to gain trading and clearing rights if they choose not to participate in practice session.
Submit Form OP004 by Oct. 28 to become market makers; stamp duty special rate and short-selling rules apply, large open position reporting requirements waived.
Applicants are restricted to regular market makers of relevant monthly stock options; if permit for monthly options is surrendered, weekly permit must also be surrendered.
From launch of weekly options contracts, automatic strike prices will be listed until expiry day for all stock options, to ensure strike prices are around underlying price.
