• HKEX proposed to amend position limits, large open position reporting requirements.
• Follows HK SFC April 2022 proposed changes to position limit regime.

Position Limits

• Add 2 tiers of 200k, 250k contracts to single stock option (SSO) position limit model.
• Introduce a 5-tiered exchange-level position limit model for single stock futures (SSF).
• The position limit for each tier will be 5k, 10k, 15k, 20k, 25k contracts, respectively.
• Calculation of the contract-equivalent number will be subject to an additional liquidity threshold at 1.34% of the past 6 months’ turnover of the underlying stock.
• The liquidity threshold could be revised from time to time by HKFE when necessary.
• Mechanism to review SSF contract size for material changes due to corporate actions.

Flagship Minis

• Remove additional position limits that apply only to futures and options of mini-Hang Seng index and mini-Hang Seng China enterprises index, known as the flagship minis.
• Revise large open position reporting level of flagship minis from 2.5k to 500 contracts.

Effectiveness

• Consultation opens until 30 June 2022.