New MSCI index derivatives are the next step in HKEX’s international strategy
Written By
May 27, 2020

Updated: 27 May 2020

HKEX’s new licence agreement with MSCI builds on our role as Asia’s premier risk management centre and ensures Hong Kong’s continued role as the leading global market in the Asian time-zone.


Today Hong Kong Exchanges and Clearing Limited (HKEX) announced a major new licence agreement with MSCI Inc. to introduce futures and options contracts on a suite of MSCI’s Asia and Emerging Markets indices. This is another important step forward in the development of HKEX’s international strategy, diversifying our offering and adding to the array of products already available in the HKEX department store!

The ten-year licensing agreement further anchors HKEX and MSCI’s commitment to a long-term product development and innovation programme in the region. MSCI is one of the world’s leading and most reputable index companies, trusted by traders and investors around the globe. Their choice of Hong Kong for the new home for their Asian suite of indices is a vote of confidence not only for HKEX, but for the wider financial and professional services sectors in Hong Kong.


For investors, this will create more opportunities, with more efficient and easier-to-access risk management tools. For the trading community it further enhances the wide range of asset classes and products they are able to trade and settle in Hong Kong.

Hong Kong is at the confluence of East and West and this agreement with MSCI represents another significant addition to the breadth, depth and attractiveness of Hong Kong’s vibrant financial markets.  It is also an emphatic vote of confidence in Hong Kong.


The next step in HKEX’s strategy

HKEX is the IPO capital of the world, ranking number one in seven the last 11 years. It is also the largest structured product market in the world and the largest ETF market in Asia ex-Japan. Our existing derivatives ecosystem is booming and has grown by 50 per cent in the past five years. Our constant commitment to innovation, adaptability and reinvention are paying off. Hong Kong is unique in its ability to understand the markets and investor appetite in China, in Asia and in the West, in equal measure.

HKEX’s pioneering approach to the growth of Hong Kong’s capital markets has produced success, from the launch of the defining Stock Connect programmes in 2014 and 2016, to our 2019 commitment to introduce MSCI China A Index futures contracts to this market.

Today’s agreement with MSCI reflects HKEX’s strategy to expand internationally, while at the same time leveraging our unique connection with China. This will make our markets more liquid and diverse, deeper and broader. Investors will benefit from a broader portfolio of products, and greater opportunity to manage their risks and capital. This, in turn, will attract even more companies and products to the vibrancy of Hong Kong’s market.

Set against a globally trusted markets framework, backed by the rule of law and staffed by an exceptional professional community, HKEX’s portfolio of markets, clearing houses and products is supported by resilient technology and operations. This is HKEX’s strategy – China Anchored, Globally Connected, Technology Empowered.

HKEX is able to introduce these new products using our existing trading platforms without requiring significant investment in infrastructure. Our ability to efficiently clear a wide range of derivatives on our existing platforms creates a robust liquidity ecosystem and generates immense efficiencies for global investors.

Adding derivative contracts on the MSCI Asian and Emerging Markets suite of indices adds another important facet to HKEX, and this has the potential to be a defining moment for Hong Kong’s markets.

We are truly delighted to be working with the exceptional team at MSCI on this key development, and we look forward to sharing further updates and details on this great opportunity as soon as we are able to.