TRADED options will be launched in Hongkong for the first time on March 5.
The index options will be traded at the Hongkong Futures Exchange from that day, offering a new risk management tool with which investors can more effectively hedge and undertake risk management strategies.
Exchange chief executive Gary Knight said: ''This is the most important investment vehicle to hit Hongkong in its history.'' He said the introduction of the investment tool on more developed markets elsewhere in the world had transformed equity trading by allowing investors to split the risk on an underlying investment, to price underlying stocks and to price new issues.
The exchange said about 10 brokerages had been involved in the development of the new contract, but it had no numbers for the expected take-up of the new registered class of membership which would be needed to undertake market making on the trading floor.
The contracts were planned to take in the next two calendar months, plus the further months in the next cycle. This would include March, June, September and December when trading starts on March 5.
Hours have been set at from 10 am to 12.30 pm and from 2.30 pm to 3.45 pm, with open outcry trading.
