HKEx to reduce fees for trading stock options
Twenty-six series of stock options will have their fees reduced by up to 83 per cent from May 2, as part of a range of measures unveiled yesterday to promote stock options, after the market operator recorded a drop in turnover last year.
Hong Kong Exchanges and Clearing will cut fees on stock options in a bid to boost turnover.
Twenty-six series of stock options will have their fees reduced by up to 83 per cent from May 2, as part of a range of measures unveiled yesterday to promote stock options, after the market operator recorded a drop in turnover last year.
Turnover in stock options dropped 25 per cent to 56.08 million contracts last year from 74.33 million in 2011.
Joseph Tong Tang, an executive director of Sun Hung Kai Financial, said stock option turnover fell in step with the general decline in overall market turnover of 23 per cent last year.
"As market sentiment was weak last year, investors had no interest to trade in stocks or stock options. Turnover on stock options will increase if the overall stock market turnover improves," Tong said. "The fee cut and other promotional efforts would also help to boost turnover."
Romnesh Lamba, the HKEx's co-head of global markets, said stock options now represented about half of the HKEx futures and options turnover. He believes there are opportunities for growth.