Identification of L&I Products by name
The name of leveraged and inverse products (L&I Products) should enable investors to clearly identify these products.
The name of a L&I Product will tell you whether it is a leveraged or inverse product and its leverage factor. The word “daily” will also form part of the name. For example,
- A two-time leveraged product should be called "[Issuer] [Index] Daily (2x) Leveraged Product"
- A one-time inverse product should be called "[Issuer] [Index] Daily (-1x) Inverse Product"
- A two-time inverse product should be called "[Issuer] [Index] Daily (-2x) Inverse Product"
Identification by annotation
In case a L&I Product uses swaps to achieve its investment objective (swap-based L&I Product), an asterisk (*) and an annotation in English “(*This is a synthetic product)” will appear right after the swap-based L&I Product’s name in the product’s offering documents, marketing materials, notices as well as other communication materials issued to Hong Kong investors.
For example, the annotation to the name of a two-time swap-based leveraged product should be
- ABC Daily (2x) Leveraged Product * (*This is a synthetic product)
Identification by markers
The English and Chinese stock short names of L&I Products will include markers so that you can identify L&I Products on the stock pages of HKEX’s securities trading system. “L”, “I”, “F” and “X” are markers for leveraged products, inverse products, futures-based L&I Products and swap-based L&I Products respectively.
The markers shall be placed at the beginning of the English and Chinese stock short names for all L&I Products listed on SEHK.
- The stock short name of a futures-based 2-time leveraged product will be F L 2 ABC
- The stock short name of a swap-based inverse product will be X I ABC
- The stock short name of a futures-based 2-time inverse product will be F I -2 ABC
The markers will not appear in the full names of L&I Products.
8 May 2019