HKEx to Launch Zero-Day Options on Hang Seng Index by Early 2027

Hong Kong Exchanges and Clearing Ltd. (HKEx) is developing a framework to launch options that expire within a single day, targeting a release in the first quarter of 2027. The initiative aims to modernize the exchange's offerings and attract a broader range of speculative and hedging activity. This strategic shift follows a massive surge in zero-days-to-expiry (0DTE) trading in the United States, where short-dated bets have significantly boosted overall derivatives volume and altered market dynamics. By introducing similar instruments, HKEx seeks to remain competitive in the global derivatives landscape. According to sources familiar with the private discussions, the new contracts will be based on the benchmark Hang Seng Index. While previous industry expectations suggested the bourse might launch these derivatives as early as the first half of 2025, the current timeline indicates a more gradual rollout. The introduction of 0DTE options is expected to increase liquidity and trading frequency on the exchange. For market participants, these instruments provide a high-leverage tool for reacting to immediate news events, though they also introduce new layers of intraday volatility to the underlying index.