Pension funds and other institutional investors in the country are exploring different options for coping with a potential jump in volatility in global markets.
China's securities regulator has approved Shanghai's first equity option, but the move is seen as conservative after more ambitious proposals were mooted in a consultation last month.
Listed options on China A-share ETFs have drawn interest from banks, institutional investors and market-makers looking to cash in on demand for China-related securities.
CME Group is working with Chinese regulators to help more brokers trade derivatives overseas. This would enable mainland institutions to better hedge their commodity risks.
New capital requirements, sustained low interest rates and falling commissions from derivatives trading have compelled the agency brokerage to readjust.
Ronald Arculli says Hong Kong Exchanges and Clearing intends to introduce listed options that allow some degree of tailoring.