Could 27, 2025 (MLN): Hong Kong Exchanges and Clearing Ltd. (HKEX) is making ready to introduce "zero-days to expiry" (0DTE) choices on the Grasp Seng Index as early as the primary half of 2026, bringing to Asia an more and more common by-product instrument that has reshaped U.S. fairness markets lately.

Based on sources acquainted with the matter, HKEX has been consulting with market members on the potential launch, receiving encouraging suggestions.

A consultant from the alternate acknowledged that any updates to product choices might be communicated to the market accordingly, as Bloomberg reported.

These ultra-short-term derivatives launched within the U.S. in 2022 have grown quickly in reputation, with 0DTE contracts accounting for greater than half of the whole S&P 500 Index choices quantity by This autumn 2024.

HKEX’s managing director and head of equities product improvement emphasised the “nice demand” for shorter-dated contracts and expressed the bourse’s intention to reflect the success witnessed within the U.S., the world’s largest equities market.

Michael Brown, a strategist at Pepperstone Group in London, famous that whereas the product introduces a “new solution to entry the market,” it might additionally heighten market volatility.

“It’s a tremendous speculative product and may give rise to undesirable tail-wagging-the-dog strikes,” he mentioned.

HKEX has been actively increasing its derivatives choices. In current months, it launched weekly contracts on the Grasp Seng Tech Index in September and on 10 single shares in November.

The alternate additionally noticed report quarterly income pushed by a surge in inventory buying and selling and new listings.

Derivatives exercise in Hong Kong has remained robust in early 2025. Modern Amperex Expertise Co. Ltd. recorded the best choices quantity on debut final week in comparison with any IPO prior to now decade.

Weekly contracts for the inventory are scheduled to start buying and selling on June 2.

Regardless of rising curiosity, some market observers have raised issues about 0DTE choices doubtlessly growing monetary market dangers.

Notably, investor Invoice Ackman and others have warned that the extremely speculative nature of those devices might pose systemic challenges if left unchecked.

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Posted on: 2025-05-27T16:43:57+05:00

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