The contracts to be introduced in Hong Kong will be based on a suite of indexes in Asia and Emerging Markets
Hong Kong Exchanges and Clearing (HKEX) announced that its subsidiary Hong Kong Futures Exchange has signed an agreement to license MSCI Indexes in Asia and Emerging Markets for the introduction of futures and options contracts in Hong Kong.
The licensing agreement could significantly expand HKEX’s existing relationship with MSCI, after the launch of MSCI Asia Ex-Japan Index futures. It follows the last year’s announcement of the planned launch of MSCI China A Index futures.
The stock exchange operator also claims that the agreement further solidifies the two companies’ commitment towards their long-term product development and innovation programme in the region.
Hong Kong Exchanges and Clearing CEO Charles Li said: “This is very exciting news indeed for Hong Kong and HKEX. As the global markets leader in the Asian timezone, and reflecting our unique role connecting markets and investors across the world, we are very pleased to today be announcing this major agreement with MSCI.
“Bringing enhanced liquidity to our markets, this builds on our stated strategy and our 2019 commitment to launch MSCI China A index futures in Hong Kong. It comes at a time when Hong Kong’s derivatives market is going from strength to strength and represents another significant development in continuing to build the breadth, depth and attractiveness of Hong Kong’s vibrant financial markets.”
37 future and options contracts to be launched in Hong Kong
The licensing agreement has been signed for the introduction of 37 future and options contracts based on a suite of indexes in Asia and Emerging Markets.
The launch of the products is subject to regulatory approvals and market conditions.
HKEX is expected to announce the launch dates of the contracts and detailed production specifications, once the launch dates are confirmed.
MSCI chairman and CEO Henry Fernandez said: “MSCI’s mission as a provider of tools, services and insights for the global investment industry is to help investors around the world better understand and navigate investment opportunities and risks.
“As we continue to see increasing demand from global investors in enhancing their risk management capabilities, we are pleased to license HKEX to use our indexes for this expansive suite of new trading and risk management tools for global investors.”