HONG KONG, May 16, 2018 /PRNewswire/ -- Hong Kong Exchanges and Clearing Limited (HKEX) plans to introduce MSCI All Country (AC) Asia ex Japan Net Total Return Index (MSCI AxJ) Futures, the first regional stock index futures contract for HKEX, on Monday, 11 June 2018, pending regulatory approval.
HKEX's MSCI AxJ Futures will be the first futures contract traded on an exchange in Asia that is linked to this index.
The MSCI AC Asia ex Japan index is a well-established benchmark that tracks the performance of 11 Asian equity markets and includes Hong Kong- and US-listed Mainland enterprises. The net total return feature incorporates net dividends after taxes.
There are 11 Exchange Traded Funds linked to the MSCI AxJ, one of which is listed in Hong Kong.
"MSCI's All Country Asia ex Japan index is a key benchmark for the world's asset managers and we look forward to being the first exchange in Asia to offer MSCI AxJ futures," said Li Gang, HKEX's Co-head of Market Development. "Our MSCI AxJ Futures will be supported by liquidity providers to allow fund managers and other investors to get Asian equity exposure quickly and efficiently for risk management or other purposes."
"This product builds on our mission to extend and deepen our value proposition by offering equity and FICC (fixed income, currency and commodities) products with Mainland and international relevance," said Mr Li.
"We are pleased that HKEX chose MSCI for the launch of new equity index futures based on the MSCI AC Asia ex Japan Index, which is an important flagship index and used by investors around the world as a fund benchmark and as the basis of various exchange traded products. HKEX is one of the leading derivatives exchanges in Asia, and we are excited to support their continued growth," said Theodore Niggli, head of the MSCI Asia Pacific Product Management group.
Key Features of HKEX's MSCI AxJ Futures Contract
| Underlying Index |
MSCI All Country Asia ex Japan Net Total Return Index |
| Trading Currency |
US dollar |
| Contract Multiplier |
US$100 per index point |
| Minimum Fluctuation |
0.01 index point (or US$1) |
| Contract Months |
Nearest five calendar quarterly months |
| Trading Hours (Hong Kong time) |
8:30 am -- 4:30 pm (Day Session); |
| Last Trading Day |
The third Friday of the month; if it falls on a Hong Kong public holiday, the Last Trading Day will be the preceding Business Day which is also a business day in Hong Kong |
| Final Settlement Price |
Official closing value of the Underlying Index on the third Friday |
Margin rates will be announced in due course.
Additional MSCI AxJ Futures information is available in a circular on the HKEX website.
For details of the MSCI AxJ Index, please see this factsheet on the MSCI website. (https://www.msci.com/documents/10199/27561c18-c30e-4d12-9321-5c83094e0d65)
