Author: Chief China Economist's Office, Hong Kong Exchanges and Clearing Limited
REPORT SUMMARY
The Derivatives Market Transaction Survey (DMTS) was conducted annually during the period of 1994 to 2015 (by Hong Kong Futures Exchange on its market prior to 2001) and resumed in 2019 for the study period of July 2018 to June 2019 (referred to as 2018/19). The objectives are to track the trading composition by investor type and by trading purpose, as well as the market share of retail online trading, in HKEX’s derivatives market which comprises predominantly financial futures and options contracts (excluding the commodity derivatives market operated by the London Metal Exchange, part of the HKEX Group). The 2018/19 Survey covers Hang Seng Index (HSI) futures, HSI options, Mini-HSI futures, Mini-HSI options, Hang Seng China Enterprises Index or H-shares Index (HSCEI) futures, HSCEI options, Mini-HSCEI futures, USD/CNH futures, and stock options. These products together accounted for 99% of the total turnover of the HKEX derivatives market during the study period. The respondents contributed 95% of the total turnover in the products under study during the study period. The market turnover volume in 2018/19 increased by 62% over the previous survey period of 2014/15, owing largely to the increase in trading volume of the HSI products despite a drop in the trading volume of stock options. The contribution of stock options was 42% of the total market volume, albeit only 2% in notional value terms. The key findings of the trading composition of the overall market and by product segment are summarised below.