What are the criteria for active quotes?

Issuers are only committed to providing active quotes for warrants and CBBCs that satisfy the following criteria (as measured on a real time basis):

(a) an active underlying;

(b) 50% or less of their aggregate number outstanding in the market;

(c) for warrants only, remaining time to expiry of at least 30 calendar days (for instance, if the expiry date of the warrant is 2 January 2013, active quote should be provided by the liquidity provider up to and inclusive of 3 December 2012) ;

(d) for warrants only, moneyness between 20% in-the-money and 20% out-of-the-money. “Moneyness” is derived by comparing the spot price or level of the underlying and the exercise price or strike level; and

(e) for CBBCs only, the prevailing price of the underlying stock falls outside 2% of the call price or the prevailing level of the underlying index falls outside 1% of the call level. This “qualified range” is derived by comparing the spot price or level of the underlying and the call price or level. These criteria are set out in paragraph 4.2 of the Industry Principles: 

https://www.hkex.com.hk/-/media/HKEX-Market/Products/Securities/Derivative-Warrants/Industry-Principles-on-Liquidity-Provision-for-Listed-Structured-Products/principle.pdf