Securities and Futures (Contracts Limits and Reportable Positions) Rules (Cap. 571Y) (Version Date: 22/12/2023)

A new version of the Securities and Futures (Contracts Limits and Reportable Positions) Rules was published on Hong Kong e-Legislation, the official platform of the Hong Kong government for publicizing legal documents. The latest version contains amendments to the main body and both schedules of the rules to reflect the recent revisions to the position limits regime which came into force on December 22, 2023. Specifically, the modifications reflect the following:
– revisions to the position limits of stock options and futures contracts by expanding the current three-tier model based on liquidity and market capitalization of the underlying to a five-tier model;
– the removal of mini stock index futures and options contracts from the position limit requirement;
– the increase in the position limits for Renminbi currency contracts;
– the exemption of all derivatives in relation to three indices, the Hang Seng Index, the Hang Seng China Enterprises Index, and the Hang Seng TECH Index from the position limit requirement; and
– changes as regards the expansion of the position limits to sub-fund to
– clarify that ALL funds regardless of the legal form will be subject to the new requirement; and
– require all fund managers to observe position limits and report on positions at individual fund level.
Please also see EventID 15414 and EventID 18459 in this context for more information on the changes.