Hong Kong Exchanges and Clearing (0388.HK) plans to introduce options contracts tied to the Hang Seng Index that expire in less than 24 hours, targeting a launch in the first quarter of 2027, according to people familiar with the matter.
An HKEX spokesperson declined to comment on the plans. The exchange had previously indicated in 2025 an ambition to roll out such products.
The instruments, known as zero-day to expiry (0DTE) options, have fundamentally reshaped US trading dynamics since their introduction in 2022. Contracts expiring daily now represent more than 50 percent of the total trading volume for S&P 500 options, allowing traders to place short-term bets on intraday market moves and specific economic data releases.
The proposed launch represents a significant strategic push by HKEX to bolster derivatives trading volumes and enhance its competitive standing against global exchanges. The move follows an expansion of its weekly contract offerings in 2024 and could attract significant liquidity, but may also lead to a rise in market volatility, mirroring the effects observed in American markets.
This article is for informational purposes only and does not constitute investment advice.
