The Hong Kong Futures Exchange, a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), has announced that American investors can now trade its futures contracts directly from within the United States, after they were certified by the US' Commodity Futures Trading Commission (CFTC).
The CES China 120 Index (CES 120) futures contract is the world's first exchange-traded futures contract with an index that tracks the A shares of Mainland companies as well as Mainland stocks listed in Hong Kong. As such, it is said to be a convenient and cost effective way to gain exposure to the Mainland and Hong Kong stock markets.
The underlying index of the HSI Volatility Index (VHSI) futures contract, on the other hand, tracks the implied volatility of Hang Seng Index (HSI) options, making the contract an ideal tool for investors looking to manage volatility risk in Hong Kong's stock market. VHSI futures complement HKEx's HSI options.
HKEx has been offering its HSI futures, Mini HSI futures, H-shares Index futures and Mini H-shares Index futures in the US under previous decisions by the CFTC.
Investors from overseas provide about a quarter of the trading volume in HKEx's derivatives market and the US accounts for 16 percent of overseas investors' trading, according to HKEx's latest Derivatives Market Transaction Survey.
"The US is one of our most important markets and the CFTC certification of VHSI and CES 120 futures enables us to bring our volatility and China futures products directly to investors in the US," said Calvin Tai, HKEx's Co-Head of Equities and Fixed Income and Currency. "We are optimistic about attracting more US investor interest in our futures products, which offer diversity and easy access to China exposure."A comprehensive report in our Intelligence Report series giving a country-by-country analysis of offshore investment funds, stock exchanges and trusts, with an analysis of the US QI regime, is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report9.asp
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