The gold futures initiative resulted from the policy direction set by the HKEx Board in January this year after the Directors discussed the final report from the consultant appointed by HKEx to study the feasibility of trading commodities derivatives in Hong Kong and considered the consultant's recommendations. The Futures Exchange offered gold futures trading in the 1980s and 1990s, before HKEx was established. The relaunch of gold futures is in response to the renewed interest in gold.
HKEx's gold futures market will be an open, competitive and regulated trading platform with products based on the London gold standard, which is popular among Hong Kong and international investors. Potential market participants include individual and institutional investors, bullion dealers, banks and corporations involved in gold businesses.
Asian gold market participants will be able to use HKEx's gold futures to establish or adjust positions in reaction to local and overseas developments during the Asian business day (trading hours will be 8:30 am to 5:00 pm without lunch break, Monday through Friday, excluding Hong Kong public holidays).
Gold futures will be traded in US dollars at HKEx and cash-settled in US dollars, based on the results of consultations with Exchange Participants active in the gold business and their current practices when handling gold trading. Exchange Participants will be required to have US dollar settlement arrangements with the Clearing House before they can access HKEx's gold futures market. -- www.hkex.com.hk
