What is iMarkets?
iMarkets is a B2B electronic platform created to promote liquidity, depth and innovation for structured investment products (SIPs) (see below). iMarkets is not a product provider and does not participate in any transaction.

What is the difference between a traditional financial portal and iMarkets?
Traditional financial portals provide a platform for trading single products such as bonds, which are one building block of SIPs. By providing standardised products, the traditional portal is merely a price aggregator, driven by the nature of the products, not by customer requirements. iMarkets however provides an online platform for customised products meeting clients' preference. It is, in other words, client driven.

How does iMarkets add value?
By providing an electronic platform, iMarkets integrates the strength of private banks, investment banks, commercial banks, stockbrokers and other market players into one powerful hub to accelerate development of SIPs. We add value by improving liquidity, depth, efficiency and innovation to the SIP market. iMarkets is designed to introduce a wide variety of products to investors and to provide the broadest distribution channels to financial institutions. iMarkets aims to offer straight through processing (STP) (see below) to facilitate the ease and efficiency of transactions.

What are Structured Investment Products (SIPs)?
Structured Investment Products (SIPs) are investment packages structured to meet investor's individual risk-return criteria. SIPs normally consist of a combination of bond, asset, and derivatives, such as call and put options. The idea being to leverage one investment product off another and thus produce a better risk/return profile than is available from investments in individual products. This means that the rate of return may not necessarily be the same as that of the underlying assets, indeed the objective is to produce better rates of profit, on a risk adjusted basis.

Why invests in SIP?
There are a wide variety of SIP options designed to ensure that all investor's risk-return criteria can be met. SIPs are designed for sophisticated investors who have taken a view on the potential of various markets and different classes of investment and need an instrument through which to obtain maximum profit by acting on this view. For example, investors with a view on the likely upward direction of various listed stocks are likely to be attracted to Equity Linked Notes (see below) because they offer the opportunity for obtaining both higher than market level rates of interest or the prospect of purchasing a stock below its current market price.

What products are currently traded through iMarkets?
At present iMarkets is offering Equity Linked Notes (ELNs), Principal Guaranteed Notes (PGNs), and Equity Options. Other products will be rolled out in the near future.

What are the specifications of ELN commonly traded through iMarkets?
Example of specifications of ELN commonly traded through iMarkets:

Asset Class : Hong Kong Stock Exchange traded equities
Maturity : 1st business day of each calendar month
Settlement : 10 business days from contract date
Strike/Spot % : from around 96% to 87% (represented by 5 strike intervals)
Underlying asset : major Hang Seng Index constituents
Valuation (Fixing) Date : 2 days before maturity
Settlement at maturity : physical settlement (cash for odd lots)

Who should invest in ELN?
An investor who has developed a view on a stock and would like to buy equity at a lower than market price may consider investing in ELN. However investors must be prepared to take delivery of the underlying stock when the closing market price of the stock is lower than the strike (exercise) price on the fixing date of the ELN. In other words at the date when the note comes to maturity. If however, the underlying stock closes at or above the strike price, as anticipated, investors will have achieved a rate of return several times higher than the market interest rate.

Who participates in iMarkets?
iMarkets serves as a virtual platform. Financial institutions can become a member participant of the platform by registering as a product provider or marketer.
Product provider participants (usually investment banks) will provide products for the marketer participants to trade on the platform.
Marketer participants (usually stockbrokers, private banks, commercial banks) trade the products provided on the platform, either on behalf of their clients or for their own accounts.
Individual clients can participate via one of the marketer participants by establishing trading accounts similar to other arrangements with banks or stockbrokers.

What is straight through processing?
Straight through processing (STP) is a term describing the automated processing of trades from the time when prices are established to execution by the back office for clearing and settlement. The objective is a seamless, electronic transfer of information to all parties involved in the transaction cycle by combining the expertise of participants with cutting edge technologies. One of iMarkets' targets is to add value by eventually developing STP in all transactions. This will reduce cost and ease the transaction flow.

What is meant by "turning complexity into advantage"?
iMarkets has developed a revolutionary and innovative technology to assist investors in choosing a product that matches their risk and return preference. Our patent-pending technology is capable of breaking complex SIPs into simple and manageable financial building blocks. These include bonds, underlying securities of different asset classes, call and put options (both long and short sides). The platform is able to "structure" an SIP according to investors' risk and return preference. Our pricing engine can select a combination of best-priced derivatives and bonds/securities to provide the best value SIP. In addition, the execution engine offers instantaneous product delivery and initial hedging.

Who runs iMarkets?
iMarkets was established in 2000, as a wholly owned subsidiary of Cheung Kong (Holdings) Limited. It was founded to develop the SIP market. Being a user driven platform iMarkets will reflect the needs and preferences of member participants and their end user clients who will decide which products and services should be supplied by the platform.

Which regulatory bodies does iMarkets register with?
iMarkets is registered with the Securities and Futures Commission of Hong Kong, which has granted a Registered Dealer License (No. DC 001453).

For further information on SIPs trading on the iMarkets' platform, please contact iMarkets Partner Firms.

This website is intended to be accessed by sophisticated and professional investors in Hong Kong only.


The information on this site were made available solely for information purposes and do not constitute an offer, solicitation or recommendation with respect to buy or sell any investment products, or securities, or financial products and instruments (the "Products"), or to participate in any particular trading activities or strategies. Analysis and information have not been independently verified, and any trade executed on the basis of these information are taken at the investors' own risks. Investors are advised to have sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of investing in any of these Products, and should be able to bear the risks of an investment.

The information on this site were obtained from sources believe to be reliable. iMarkets Ltd. makes no express or implied representations or warranties concerning the completeness or accuracy or otherwise of these information and accept no responsibility or liability whatsoever for any loss or damage arising from these information.

The price and income of anyof the Products referenced in this site may experience upward or downward movements, and may even become valueless. There is an inherent risk that losses may be incurred rather than profit made as a result of buying and selling these Products. Past performance is not necessarily indicative of future performance.

The risk of loss in trading futures contracts or options can be substantial. In some circumstances, you may sustain losses in excess of your initial margin funds. Placing contingent orders, such as "stop-loss" or "stop-limit" orders, will not necessarily achieve the desired results. Market conditions may make it impossible to execute such orders. You may be called upon at short notice to deposit additional margin funds. If the required funds are not provided within the prescribed time, your position may be liquidated. You will remain liable for any resulting deficit in your account. You should therefore study and understand futures contracts and options before you trade and carefully consider whether such trading is suitable in the light of your own financial position and investment objectives.