On Jul. 26, HKEX standardized the listing rules for option contracts.
HKEX revised rules to standardize the automatic strike listing for all option contracts traded on HKFE, which aligns with current arrangement for weekly option contracts.
In addition, HKEX informedexchange participants (EPs) regarding the amendments.
Background
For monthly option contracts, strike prices have historically been automatically generated upon the daily price movement of the underlying on each trading day, except on the final 5 trading days before the expiry day and the expiry day.
HKFE is standardizing Rules, regulations and procedures of HKFE to enable automatic strike listing upon the daily underlying price movement through to the expiry day for all option products, for the consistency across weekly and monthly option products.
Amendments
Deleted references to the phrase other than the spot month option contract on or after the 5th trading day preceding the expiry day, within several contract specifications.
Effectiveness
The amendments will be effective from Sep. 30, 2024.
