FIA responds to HKEX market consultation on revision of position limits
FIA has responded to the Hong Kong Exchange market consultation seeking feedback on proposals to revise stock option position limits.
Whilst the current proposal is only limited to stock options, FIA has submitted a response supporting the revision of position limits generally to help Hong Kong maintain its global competitiveness, to align Hong Kong markets with other jurisdictions and improve risk management capabilities.
FIA has urged for the revisions of positions limits to be extended to asset classes, notably futures. FIA also encourages and supports the introduction of hedging exemptions in Hong Kong to facilitate the risk management activities of qualified users whose hedging needs exceed the prescribed limits.
A copy of the response can be viewed below.