Regulatory Alerts2026-07-24
Added · Updated
SFC enhances regulatory framework for daily leveraged and inverse products to ensure orderly market trading
The Securities and Futures Commission requires leveraged and inverse products with highly dynamic capacity to adopt a flexible leverage structure, allowing the leverage factor to vary daily within caps of 2x for leveraged products and -2x for inverse products. Product providers must disclose the targeted leverage factor after market close every day and publish it on their websites and the HKEX website, while product names must indicate the flexible leverage feature and maximum leverage factor. These measures apply to providers of leveraged and inverse products, including Single Stock L&I Products, to manage tracking difference risk and clarify the daily trading nature of these instruments.
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