The move by MSCI strengthens Hong Kong's position as an Asian trade hub for derivatives and follows the successful launch of its Asia Ex-Japan Index futures, and last year's joint announcement on the planned launch of MSCI China A Index futures.
Hong Kong Futures Exchange, a wholly owned subsidiary of Hong Kong Exchanges and Clearing (HKEX) has signed an agreement with MSCI to license a suite of its indexes in Asia and emerging markets for the introduction of futures and options contracts in Hong Kong.
The introduction of the 37 futures and options contracts remain subject to regulatory approvals and market conditions, an announcement on Wednesday said, with launch dates of the contracts and detailed product specifications to be confirmed.
«It comes at a time when Hong Kong’s derivatives market is going from strength to strength and represents another significant development in continuing to build the breadth, depth and attractiveness of Hong Kong’s vibrant financial markets,» Charles Li, HKEX chief executive, said about the agreement.
Singapore Agreement Ends
Beijing is due to adopt a set of new national security laws for Hong Kong tomorrow, a move that has cast doubt over the territory's future as an international finance hub. However, MSCI's expanded partnership with HKEX can be seen as a play to access a larger base of Chinese investors in the future, and a vote of confidence for the city.
Earlier this morning, the Singapore Exchange (SGX) said it would be discontinuing its license agreements with the index provider for equity futures indices and futures contracts when they expire in February 2021, after 23 years.
