HKEX plans to launch zero-day options by 2026

May 27, 2025 (MLN): Hong Kong Exchanges and Clearing Ltd. (HKEX) is preparing to introduce "zero-days to expiry" (0DTE) options on the Hang Seng Index as early as the first half of 2026, bringing to Asia an increasingly popular derivative instrument that has reshaped U.S. equity markets in recent years.

According to sources familiar with the matter, HKEX has been consulting with market participants on the potential launch, receiving encouraging feedback.

A representative from the exchange stated that any updates to product offerings will be communicated to the market accordingly, as Bloomberg reported.

These ultra-short-term derivatives introduced in the U.S. in 2022 have grown rapidly in popularity, with 0DTE contracts accounting for more than half of the total S&P 500 Index options volume by Q4 2024.

HKEX’s managing director and head of equities product development emphasized the “great demand” for shorter-dated contracts and expressed the bourse’s intention to mirror the success witnessed in the U.S., the world’s largest equities market.

Michael Brown, a strategist at Pepperstone Group in London, noted that while the product introduces a “new way to access the market,” it could also heighten market volatility.

“It is a super speculative product and can give rise to unwanted tail-wagging-the-dog moves,” he said.

HKEX has been actively expanding its derivatives offerings. In recent months, it introduced weekly contracts on the Hang Seng Tech Index in September and on 10 single stocks in November.

The exchange also saw record quarterly profits driven by a surge in stock trading and new listings.

Derivatives activity in Hong Kong has remained strong in early 2025. Contemporary Amperex Technology Co. Ltd. recorded the highest options volume on debut last week compared to any IPO in the past decade.

Weekly contracts for the stock are scheduled to begin trading on June 2.

Despite growing interest, some market observers have raised concerns about 0DTE options potentially increasing financial market risks.

Notably, investor Bill Ackman and others have warned that the highly speculative nature of these instruments could pose systemic challenges if left unchecked.

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