Hong Kong Exchange improves the spacing between exercise prices for each cycle and will be implemented on July 27th.

On June 25, HKEX announced that it will optimize the exercise price intervals of weekly stock options and index options. The adjustments, subject to regulatory approval, will be implemented on July 27, 2026. By narrowing the exercise price intervals of each cycle, investors will have access to contracts with exercise prices closer to current market levels. This new mechanism allows market participants to more accurately deploy their positions, thereby enhancing the trading and pricing efficiency of each cycle. In the long run, as market participants make greater use of short-term options strategies, the optimization measures are expected to improve market liquidity and stimulate overall trading activities. The exercise price intervals listed in the contract specifications of weekly stock options will be narrowed as shown in Table A. Currently, Group B intervals apply to all stock options listed on the Hong Kong Stock Exchange, including monthly and weekly contracts. Under the new measures, Group B intervals will continue to apply to monthly stock option contracts, while Group A with narrower exercise price intervals will apply to weekly stock options. For weekly stock options, a new exercise price will be added after each trading day based on the closing price of the relevant security, with at least 20 exercise prices above and below the equivalent exercise price. HKEX may, at its discretion, add new exercise prices beyond this range. According to the contract specifications of weekly index options, if the expiration date of a weekly contract coincides with the expiration date of the current month's contract, the weekly contract will not be listed. In this case, the monthly contract will continue to use the wider exercise price intervals listed in the contract specifications. In this scenario, only exercise prices based on wider intervals will be available for trading. Under the new arrangement, the narrowed exercise price intervals will apply to all cycle contracts, while the existing exercise price intervals will continue to apply to monthly stock options and index options. HKEX will also expand market maker obligations to support market liquidity.