Turnover in the local futures market is tipped to increase this year after activity in almost all the 13 products traded at the Hong Kong exchange fell sharply in the past two years.
Futures traders blamed the lacklustre market on the delayed introduction of the electronic trading system and the'black' futures market operated from Macau by underground firms.
According to Hong Kong Exchanges and Clearing (HKEx), total futures market turnover dropped 22 per cent last year compared with a year earlier. Futures exchange turnover last year up to December 15 was 4.88 million contracts, compared with 6.32 million contracts in 1999.
Twelve of the 13 futures exchange products recorded a lower turnover last year. Three-month Hibor futures were the only category to register a year-on-year increase at 2.9 per cent.
Trading volume in Hang Seng Index futures, the exchange's flagship product which accounts for more than 80 per cent of turnover, dropped 24 per cent compared with 1999. To December 15, 3.87 million contracts were traded compared with 5.13 million contracts in 1999.
Hang Seng 100 Options and red chips futures were the poorest performing products as both recorded an 88 per cent decline compared with 1999.
Hang Seng 100 Options had 5,876 contracts traded, compared with 51,393 contracts in 1999.
