Hong Kong Exchanges and Clearing (HKEx) will start trading volatility futures on 20 February, following the introduction of its HSI Volatility (VHSI) index last year.
Products based on the index have been approved by the Securities and Futures Commission and HKEx has finished assessing market readiness in preparation for the launch.
The exchange is also in the process of rolling out educational and marketing activities for VHSI futures.
The new products will enable market participants to hedge the exposure to volatility. The VHSI index was launched last April, and reflects the market’s expectation of stock market volatility over the next 30-day period. The index is calculated based on real-time prices of the Hang Seng Index Options listed on HKEx.