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Ms Cheung holds 10 long call contracts in an SEHK stock option class and exercises them on a Tuesday, two weeks before expiry. How are the underlying shares delivered to her?
SEHK stock options are physically settled. HKEX's clearing page states that exercised option trades are transmitted from SEOCH to CCASS as Clearing Agency Transactions, then cleared and settled under the Continuous Net Settlement system on a T+2 basis together with exchange trades; the stock options product page gives T+2 for the stock transfer after exercise and T+1 for the premium. SEOCH clears the option contracts but does not hold or deliver the shares itself. HKCC clears HKFE products, and SEHK stock options are not cash-settled. No registrar route or 7-day period exists. Source: HKEX 'Clearing Service - Securities' and Stock Options product page (hkex.com.hk, viewed October 2026) (as at October 2026).
Assuming the options clearing house also delivers the stock. SEOCH handles the option; HKSCC, through CCASS, handles the shares.
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