Hong Kong Exchanges and Clearing (HKEX) announced it will implement new arrangements on October 2 that include changing how HKEX calculates the interest paid on cash margin collateral, and lowering accommodation charges for non-cash margin collateral posted at HKEX’s clearing houses.
HKEX chief operating officer, Vanessa Lau, said in a statement: “These enhancements will better support market participants in executing their trading strategies and managing their investment risks. Taken together with the recent increases to the position limits for stock options and index derivatives, the capacity for cleared positions has materially increased while the capital efficiency of holding these positions is also being enhanced.”
For cash collateral, interest payments and charges will be calculated daily based on an approach that aligns with international peers and align across Hong Kong Securities Clearing Company Limited (HKSCC), HKFE Clearing Corporation Limited (HKCC) and The SEHK Options Clearing House Limited (SEOCH), and across all currencies that are accepted as collateral.