HKEx will expand its existing businesses such as the derivative warrant and exchange traded fund markets with emissions- and gold-related products to bolster Hong Kong's position as an international financial centre, HKEx Chief Executive Paul Chow says.

It will also explore other opportunities in these areas to ensure the city is well positioned for the future, he added. HKEx's market systems can support the trading of the products that are part of these initiatives so any IT-related investment will be insignificant.

HKEx Board of Directors has set forth its policy direction after considering consultants' final reports on the feasibility of trading commodities derivatives and emissions-related products in Hong Kong.

HKEx will develop its existing businesses with a focus on environmental and greenhouse-gases markets. It will work to facilitate the listing of emissions-related structured products and exchange traded funds on its securities market, and explore the introduction of derivatives linked to emissions.

It will partner with an overseas exchange to build a trading/clearing platform for trading in carbon and/or other emissions-related products in Hong Kong, with agreement expected to be reached before the end of this year. The set up of an auction in Hong Kong for certified emissions-reduction units will be explored.

On commodities derivatives, HKEx will facilitate the listing of gold-related structured products and exchange traded funds on its securities market, and explore the introduction of derivatives linked to any gold-related structured products or exchange traded funds listed on its securities market.

A proposal on trading cash-settled gold futures and options on its markets will be tabled to the Securities & Futures Commission.