Question 1

What are the trading fees and commissions for Dividend Futures at HKEX?

Accepted Answer

HKEX charges an Exchange Fee of HK$3.00 per contract per side and a Commission Levy of HK$0.54 per contract per side for HSI Dividend Futures, totaling HK$3.54. For HSCEI Dividend Futures, the Exchange Fee is HK$1.50 per contract per side and the Commission Levy is HK$0.54 per contract per side, resulting in a total of HK$2.04. The Investor Compensation Levy is HK$0.00 per contract per side for both. Commission is negotiable and subject to change.

Question 2

What types of derivatives products does HKEX offer?

Accepted Answer

HKEX offers a wide range of listed derivatives including Equity Index, Single Stock, Foreign Exchange, Interest Rate, and Commodities. Additionally, they provide OTC Derivatives such as Eligible OTC Clear Products, Interest Rate Swaps, Non-Deliverable Forwards, Cross Currency Swaps, and Deliverable FX. Specific products under Equity Index include various Hang Seng Index (HSI) and Hang Seng China Enterprises Index (HSCEI) futures and options, MSCI Index Futures & Options, and Hang Seng TECH Index futures and options.

Question 3

Is HKEX beginner-friendly for new investors?

Accepted Answer

HKEX itself is an exchange and clearing house, offering a platform for trading various financial products including listed derivatives like Dividend Futures. While it provides standardized contract features, reduced counterparty risk through HKFE Clearing Corporation Limited, and continuous liquidity by market makers, it does not offer direct brokerage services or educational resources specifically for beginners. Investors would need to find an "Exchange Participant" (broker) from the provided list to trade, and the beginner-friendliness would largely depend on the services offered by that specific broker, as well as the complexity of the products chosen.

Question 4

How can investors find a broker for trading Dividend Futures on HKEX?

Accepted Answer

Investors interested in trading Dividend Futures on HKEX can refer to the "Online Derivatives Trading" section provided by HKEX. This section lists various "Exchange Participants" that offer online derivatives trading services, along with their contact numbers and email addresses. Examples include BOCI Securities Ltd., BOCOM International Securities Ltd., and Bright Smart Futures & Commodities Co. Ltd., among many others.

Question 5

What are Dividend Futures and their advantages at HKEX?

Accepted Answer

Dividend Futures at HKEX are futures contracts based on the dividend payoff of stock index constituents over a calendar year. They allow equity investors to trade on expected dividend outlooks, hedge dividend exposure, or benefit from arbitrage opportunities. Advantages include standardized contract design based on official dividend point indexes, reduced counterparty risk through HKFE Clearing Corporation Limited, low exchange fees, anonymity via the Hong Kong Futures Automated Trading System (HKATS), flexibility with block trade facilities, and continuous liquidity provided by market makers.

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