Index futures can be used by issuers of callable bull/bear contracts (CBBCs) and warrants to hedge their risks, but local players have expressed little interest in trading them in the new night trading session.

“All our hedging activities can be done during the daytime,” said Edmond Lee, director of global equity flow at SG Securities.

“At night, as there is no buy-back or sell-out [of CBBCs] when the cash market is closed, [and] we don’t need to do extra hedging.”

Investors buy CBBCs or warrants to bet on the direction of movement of a stock or an index.