FIA has responded to Hong Kong Exchanges and Clearing’s consultation on proposed changes of position limits and large open position reporting requirements.
In line with its response to the Securities and Futures Commission’s consultation on position limit regime changes on 21 June, FIA highlights the importance of harmonisation between the rules imposed by the SFC and HKEX and encourages the SFC and HKEX to work together to have consistent rules in place.
FIA fully supports increasing the maximum limit for exchange-level position limits of single stock options to align with market growth, but suggests keeping to the existing three-tier model instead of introducing additional tiers. This will ensure the position limit regime is not further complicated and will minimise additional regulatory risks to exchange participants.
HKEX’s proposed model also contemplates various annual reviews, and FIA encourages HKEX to undertake these reviews more frequently to better cater to current market conditions.
Read the full response here.
- Recordkeeping and reporting
- Position Limits
- Public Policy Submissions
- Regulatory Responses