HKEX approves plan to include equity index options in after-hours derivatives trading

Over 96% of exchange participants who trade their equity index futures after-hours do it between 11:45pm to 1 am.

Hong Kong Exchanges and Clearing Limited (HKEX) is proceeding with its plan to include its most actively traded equity index options - Hang Seng Index Options, Hang Seng China Enterprises Index Options Options, Mini-HSI Options and Mini- HSCEI Options - in the after-hours trading session of its derivatives market before the end of Q2.

According to a press release, over 96% of exchange participants who trade their equity index futures during the after-hours session conduct their transactions between 11:45 pm to 1 am.

The extended period has accounted for almost a third (29%) of the total after hours trading volume.

“The positive market feedback for our phase one enhancements proved market demand for equity index products in the T+1 Session.” said HKEX’s Joint Chief Operating Officer and Head of Markets Roger Lee.

HKEX first extended its after-hours trading from 11:45 to 1am for its four most actively traded equity index futures contracts last November 6.

Since its rollout late last year, the average daily volume in the recently extended after-hours trading period was over 10,000 contracts in early 2018 with one particular day recording 21,070 contracts.