Hong Kong bourse plans to start zero-day options trading in 2026
[MUMBAI] Hong Kong's stock exchange is seeking to launch options that expire within a day as early as the first half of 2026, bringing to the Asian hub an instrument that has driven a boom in US derivatives in recent years.
Hong Kong Exchanges & Clearing (HKEX) is planning to start offering so-called 'zero-days to expiry' contracts on the Hang Seng Index, according to sources familiar with the matter who asked not to be named because the matter is private. The bourse has been consulting with market participants and the feedback has been positive, they added.
A HKEX representative said the exchange will communicate any updates to its product offerings to the market.
Known as 0DTE contracts, the derivatives were introduced in the US in 2022 and accounted for more than half of the total S&P 500 Index options volume by the last quarter of 2024.
At a panel last week, HKEX's managing director and head of equities product development said there's been 'great demand' for shorter-dated contracts, adding that the bourse wants to replicate the success seen in the world's largest equities market.
HKEX, whose quarterly profit rose to a record amid a surge in stock trading and new listings, has been expanding its options offerings. It launched weekly contracts on the Hang Seng Tech Index in September and on 10 single stocks in November.
Derivatives trading in Hong Kong started strong this year, and interest in the world's top initial public offering was high.
On its trading debut last week, Contemporary Amperex Technology Co Limited options volume surpassed that of the city's biggest listings in the past decade, with weeklies set to start on Jun 2. BLOOMBERG
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