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HKMEx’s 32 Troy Ounce Gold Futures Contract is useable by a wide range of market participants to execute hedging, arbitrage and other investing strategies. It also has the following important characteristics, designed to meet the needs of a marketplace lacking an international price-setting mechanism:
Gold is one of the world’s most important and actively traded commodities. Demand for the metal is driven by three main factors: the jewellery market, industrial manufacturing and financial investment. In addition, gold is relatively unique in that it is used as both a commodity and a monetary asset.
Although gold has a long trading history in Asia, the majority of price formation for gold is today concentrated in the North American and European markets. The recent introduction of gold futures trading in Asia has tapped into latent trading demand primarily driven by strong economic development in China and India.
Hong Kong is historically one of the world’s leading gold centres and has a natural geographical advantage in Asia. Hong Kong’s vibrant financial infrastructure ensures access to leading market participants and deep regional and international pools of liquidity.
But without a regional benchmark, true price discovery for gold is either confined to the local domestic market or must depend on the European or North American markets. Domestic markets generally restrict foreign participation and often subject it to adverse currency restrictions or tax treatment. Meanwhile, global benchmark pricing from the western hemisphere provides imperfect hedging for Asia’s trading community.
HKMEx is well positioned to address the demand of Asia’s trading community for the establishment of a gold futures contract as the regional benchmark.
| Trading Unit | 32 troy ounces | ||||
| Grade and Quality | The delivery unit of gold is 1 kilogram (32.151 troy ounces), no less than .995 fineness, cast in one-kilogram bar, and bearing a serial number and identifying stamp of a refiner approved and listed by the HKMEx. | ||||
| Price Quotation | U.S. dollars and cents per troy ounce | ||||
| Tick Size | The minimum price fluctuation shall be US$0.10 per troy ounce, US$3.20 per contract. | ||||
| Trading Hours | 08:00 to 23:00 (Hong Kong Time); Pre-opening session shall be 07:30 to 08:00 (Hong Kong Time). | ||||
| Trading Months | Current calendar month; the next two consecutive calendar months; and any even months falling within a 12-month period starting with current month. | ||||
| Last Trading Day | The second Monday of the contract month. The last trading day will be postponed to the next business day if the second Monday is an HKMEx holiday. | ||||
| Settlement Method | Physical settlement | ||||
| Spot Month Position Limit | 10,000 contracts (gross long or short); the spot month position limit shall be effective from the close of the first business day of the contract month. | ||||
| Reportable Position | 250 contracts (gross long or short) for each contract month | ||||
| Delivery Period | Four consecutive Hong Kong business days following the last trading day | ||||
| Delivery Sites | Hong Kong | ||||
| Trading Symbol | HKG | ||||
| Quote Vendor Codes |
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| Address | HKIA Tower, 1 Sky Plaza Road, Hong Kong International Airport, Lantau, Hong Kong | ||||||
| Contact person |
Thomas Ng
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| Address | 1/F., The Securicor Centre, 481, Castle Peak Road, Cheung Sha Wan, Kowloon, Hong Kong | ||||
| Website | www.g4s.com/hk | ||||
| Contact person |
Lily Wong
Sales Manager
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| Address | 1/F, Guardforce Centre, 3 Hok Yuen Street East, Hung Hom, Kowloon, Hong Kong | ||||||||||||
| Website | www.guardforce.com.hk | ||||||||||||
| Contact person |
Thomas Wong
Assistant General Manager
Jody Tsang
Senior Customer Liaison Officer
Eva Chow
Customer Liaison Officer
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| Address | Unit 01, 7/F Global Gateway, 168 Yeung Uk Road, Tsuen Wan, N.T., Hong Kong | ||||||||
| Website | www.viamat-international.com | ||||||||
| Contact person |
Michelle Leung
Deputy General Manager – Sales
Sindy Cheung
Deputy General Manager – Customer Services
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| Address | Main Office: Heraeus Technology Centre, 30 On Chuen Street, On Lok Tsuen, Fanling, N.T., Hong Kong Hunghom Office: Room 2112-13, 21/F., Peninsula Square, 18 Sung On Street, Hunghom, Kowloon, Hong Kong | ||||||||
| Website | www.heraeus.com.hk | ||||||||
| Contact person |
Jochen Schlessmann (Main Office)
Dick D.W. Poon (Hunghom Office)
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| Address | Suite 1705 The Metropolis Tower, 10 Metropolis Drive, Hung Hom, Kowloon, Hong Kong | ||||||||
| Website | www.metalor.com | ||||||||
| Contact person |
Ada Yu
Reronica Chow
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| HKMEx Fee Items | Charging Basis | HKMEx Fee (US$) | LCH Fee (US$) |
|---|---|---|---|
| Market Levy (Trading Fee) | per lot per side | 0.50 | N/A |
| Registration Fee (Clearing Fee) | per lot per side | N/A | 0.25 |
| Registration Fee (Block Trade) | per lot per side | N/A | 0.35 |
| Market Levy (EFP/EFS) | per lot per side | 0.75 (1) | 0.35 (2) |
| Delivery Fee | per lot per side | 1.00 | 3.00 |
| Error Trade Admin Fee | per error trade reported | 400 | N/A |
| Give-up Fee | per lot (on the take-up side only) | 0.10 | N/A |
| Position Transfer Fee | per lot (on the take-up side only) | 0.10 | N/A |
| SFC Levy (3) | per lot per side | 0.078 | N/A |
(1) US$0.75 includes the HKMEx Market Levy (Trading Fee) of US$0.50 and the EFP/EFS surcharge of US$0.25
(2) US$0.35 includes the LCH.Clearnet Registration Fee (Clearing Fee) of US$0.25 and the EFP/EFS surcharge of US$0.10
(3) Effective 18 November 2011
