FOi's daily roundup of news in brief, 19 January 2010

HKEx to launch flexible OTC index options Hong Kong Exchange is set to introduce flexible index options on February 8, it announced today, expanding its range of over-the-counter (OTC) contracts. The options will trade via the exchange’s block trade facility.The options will be on the Hang Seng Index and H-shares Index, with customised strike prices and expiry months. Strike prices can be any whole index point within 30% of the opening price of the spot month futures contract. The contracts will expire at the second to last trading day of any calendar month. HKEx believes flexible index options will provide OTC market participants with an attractive centrally cleared alternative. “OTC players using exchange-traded futures contracts to hedge their option positions will be able to realise collateral and margining efficiencies when they book eligible option positions with us,”...