On May 2, 2025, HK GVT gazetted the Securities and futures (contracts limits and reportable positions) (amendment) rules 2025, to implement the proposals above.
The rules come into force in accordance with rule 1, on Jul. 2, 2025.
On Feb. 27, HK SFC proposed increasing position limits for derivatives.
HK SFC proposed to increase position limits for exchange-traded derivatives linked to major HK stock indices, to facilitate hedging activities, align with market developments.
Follows HK GVT Dec. 2023 updated provisions on position limits, see #154292.
Proposed Increases in Position Limits
Will increase to 15,000 position delta for Hang Seng Index futures and options, and 25,000 position delta for Hang Seng China Enterprises Index futures and options.
For the Hang Seng TECH Index, position limits will increase to 30,000 position delta.
Changes are intended to help HK derivatives market keep pace with growth in market capitalization and trading volumes of major indices, without introducing additional risks.
Consultation Period
The public is invited to comment on the proposals by Mar. 28, 2025.
Apr. 2025 Consultation Conclusions
On Apr. 30, 2025, HK SFC published consultation conclusions on above limit increases.
Respondents noted facilitation of market liquidity, hedging efficiency, market growth.
Will amend Securities and futures (contracts limits and reportable positions) rules, Guidance note on position limits and large open position reporting requirements.
Position limits will increase for futures and options contracts on three indices: Hang Seng Index by 50% to 15k position delta, Hang Seng China Enterprises Index by 108% to 25k position delta, Hang Seng TECH Index by 43% to 30k position delta.
New position limits expected to take effect in Jul. 2025, subject to legislative process.
May 2025 HK GVT Gazettal
On May 2, 2025, HK GVT gazetted the Securities and futures (contracts limits and reportable positions) (amendment) rules 2025, to implement the proposals above.
The rules come into force in accordance with rule 1, on Jul. 2, 2025.
Regulators
HK GVT; HK SFC
Entity Types
B/D; Depo; Inv Co
Reference
OG LN 69 of 2025, 5/2/2025; PR 4/30/2025; PR, CP 2/27/2025
