Flow Traders appointed lead liquidity provider for new HKEX MSCI derivatives

HKEX confirmed in May it would expand its licensing agreement with MSCI to launch Asia and emerging market futures and options contracts.

Market maker Flow Traders has confirmed it has been appointed Tier 1 lead liquidity provider for Hong Kong Exchanges & Clearing’s (HKEX) new suite of MSCI-based derivatives.

HKEX has received approval for 33 new contracts from Hong Kong’s Securities and Futures Commission, with plans to launch the derivates in phases throughout July and August. Flow Traders will make a market in 26 of those contracts during the T session in Hong Kong, and in 14 more contracts during the T+1 session.

“HKEX’s comprehensive suite of benchmark futures, available over 17 hours a day, supports investors to facilitate in-and outflows of funds, hedge existing equity exposures, and enhance portfolio performance,” said Folkert Joling, the chief trading officer at Flow Traders. “Flow Traders is able to price blocks in any of the listed contracts, expiries, and rolls off-screen. Institutional investors can reach out to the Flow Traders Institutional Trading teams in our various global offices for further information.”

HKEX confirmed in May that it had signed a major licensing agreement with MSCI to launch the Asia and emerging markets futures and options contracts. The move expands HKEX’s existing relationship with MSCI after the exchange operator previously launched MSCI Asia Ex-Japan index futures, and MSCI China A index futures.

Singapore Exchange (SGX) confirmed in a separate statement at the time that it would reduce its licensing agreement with MSCI from February 2021 when the contract expires. Although, MSCI Singapore futures and options will remain listed on SGX, and both institutions plan to retain their partnership on MSCI Singapore index products.

“We are confident that Flow Traders’ experience and leading technology will help enhance the liquidity of our newly listed contracts and facilitate trading. A deeper pool of liquidity will enable us to further expand our derivatives offering and provide investors with greater flexibility to manage risk and maximise capital efficiency,” said Wilfred Yiu, head of markets at HKEX.