Hong Kong: New position limits for key exchange-traded derivatives

The Hong Kong Securities and Futures Commission (SFC) announced regulatory changes to position limits for exchange-traded derivatives effective July 2, 2025. The modifications apply to three major index-based financial instruments traded on Hong Kong exchanges.

Position limits for Hang Seng Index futures and options contracts will be increased from 10,000 to 15,000 position delta, for Hang Seng China Enterprises Index contracts from 12,000 to 25,000 position delta and Hang Seng TECH Index contracts will see limits rise from 21,000 to 30,000 position delta.

Rico Leung, Executive Director of Supervision of Markets at the SFC, stated that the changes will provide market participants with increased flexibility for trading activities within exchange markets. The adjustments are supposed to reflect the SFC’s capacity to balance systemic risk mitigation with financial market growth promotion, supporting Hong Kong's status as an international financial centre.

The changes affect institutional and individual market participants engaged in derivatives trading on Hong Kong exchanges.