The Hong Kong Securities and Futures Commission released a consultation on Sept. 20 proposing several enhancements to its position limit regime. Under the proposals, the cap on the excess position limit that may be authorized by the SFC would increase from 50% to 300% of the statutory position limit, and the limit for stock options would be tripled.
"The proposed enhancements address market participants’ business needs and encourage them to conduct more of their derivative activities on exchange markets," said Ashley Alder, the SFC's Chief Executive Officer. "By improving market efficiency and enhancing liquidity, this will help to promote Hong Kong as a risk management center."
