Loading…
Mr Lau, a client of Tsim Sha Tsui Futures Ltd, buys two Hang Seng Index futures contracts. Which pairing correctly names the market on which the contracts trade and the clearing house that becomes the central counterparty?
Hang Seng Index futures are Hong Kong Futures Exchange (HKFE) products. HKEX states that HKFE Clearing Corporation (HKCC) and The SEHK Options Clearing House (SEOCH) clear the derivatives traded on HKFE and SEHK respectively, each acting as central counterparty by novation. SEOCH therefore clears SEHK stock options, not HKFE futures. HKSCC clears SEHK cash-market trades through CCASS. HKEX is the holding company and recognised exchange controller under SFO s.59, not a market in its own right, and OTC Clear clears over-the-counter derivatives such as interest rate swaps, not exchange-traded futures. Source: HKEX 'Clearing Services - Listed Derivatives' (hkex.com.hk); HKEX HSI Futures and Options factsheet 2026; SFO (Cap. 571) s.59 (as at October 2026).
Candidates swap SEOCH and HKCC. SEOCH clears options traded on SEHK; HKCC clears everything traded on HKFE, including HSI futures and HSI options.
Practise more Paper 1 Participating in the Hong Kong exchanges questions
Exam-style questions with worked answers, then full timed mocks. Free to start.
Build a daily practice habit — a few exam-style questions a day, with worked answers. Free to start.
Start practising →Original study material mapped to the public HKSI Paper 1 syllabus. Unofficial, not endorsed by HKSI Institute or the SFC. Verify figures and rules against current guidance before relying on them.