HKEX names liquidity providers and market makers for Alibaba’s futures and options

Maria Nikolova

Stock futures and stock options on Alibaba Group Holding Limited will be introduced on November 26, 2019.

Hong Kong Exchanges and Clearing Limited (HKEX) has earlier today published a list of the liquidity providers and market makers for options and futures of Alibaba Group Holding Limited.

Stock futures on Alibaba will commence trading on Tuesday, November 26, 2019. Hong Kong Futures Exchange Limited announces the following market maker and liquidity providers:

  • Market Maker: IMC Asia Pacific Limited;
  • Liquidity Providers: Eclipse Options (HK) Limited and Haitong International Futures Limited.

The position limit for the Alibaba stock futures will be 5,000 open contracts per contract month. During the first two weeks of the introduction of Alibaba stock futures (i.e. between 26 November 2019 and 9 December 2019), the market making / liquidity providing obligation in terms of the maximum bid / ask spread will be two times of the original obligation.

Market makers/LPs are required to provide bid/ask quotes on the first two listed contract months. On the Commencement Day, the first two listed contract months will be December 2019 and January 2020.

Stock options on Alibaba will commence trading on Tuesday, 26 November 2019. The Stock Exchange of Hong Kong Limited announces the following market makers:

  • Eclipse Options (HK) Limited;
  • IMC Asia Pacific Limited;
  • I-Access Investors Limited;
  • Haitong International Securities Company Limited;
  • Optiver Trading Hong Kong Limited;
  • Susquehanna Hong Kong Limited;
  • Guotai Junan Securities (Hong Kong) Limited.

In order to offer more choices for investors, 12 strikes above and below HK$187.5, the nearest maximum offer price (i.e. HK$188) of the underlying stock, will be available for trading on the Commencement Date. New strike prices subsequent to the Commencement Date will be introduced according to the Operational Trading Procedures for Options Trading Exchange Participants.

The position limit for Alibaba options contracts will be 50,000 open contracts in any one market direction for all expiry months combined.

During the first two weeks (i.e. between 26 November 2019 and 9 December 2019), the market making obligations in terms of the maximum bid / ask spread will be two times of the original obligation.

From the Commencement Date to November 28, 2019, there will be six contract months available for trading and the spot month contract will be December 2019 (i.e. the last third quarter month will not be available). During this period, market makers are required to select assigned series from the six expiry months available. From November 29, 2019 onwards, the number of expiry months available for trading will resume to seven.

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