Hong Kong Exchanges and Clearing Limited (HKEx) has announced the following details of the holiday risk management arrangements.
HSI, MHI, HHI, MCH, DHH and CUS Futures Markets
There will be mandatory intra-day variation adjustment calls in the Hang Seng Index (HSI), Mini-Hang Seng Index (MHI), H-shares Index (HHI), Mini H-shares Index (MCH), HSCEI Dividend Point Index (DHH) and RMB Currency (CUS) futures markets on Thursday, 30 January 2014 based on open positions in the markets at around 12:00 noon.
The margin levels of HHI, MCH and DHH futures contracts will be temporarily increased after the close of business of the regular trading session on 29 January 2014 (Wednesday) as outlined in the table below:
Futures Contract |
Full Margin Rate |
Initial Margin |
Maintenance Margin |
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HHI |
Current Level |
33,600 |
per lot |
26,850 |
per lot |
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MCH |
Current Level |
6,720 |
per lot |
5,370 |
per lot |
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DHH |
Current Level |
2,080 |
per lot |
1,660 |
per lot |
The margin levels of HSI, MHI and CUS futures contracts will remain unchanged.
The spread margin rates will remain unchanged during this period. The margin levels of HHI, MCH and DHH futures contracts will be restored to the current levels after the close of business on 30 January 2014.
As there will be no after-hours futures trading session on 30 January 2014, no Mandatory Intra-day Variation Adjustment and Margin Call will be made by the Clearing House on the business day after the holiday, ie Tuesday, 4 February 2014.
Stock Options Market
The margin intervals for all options classes will be increased temporarily after the close of business on 29 January 2014 (see Appendix). The margin intervals will be restored to normal after the close of business on 30 January 2014.
There will be special intra-day margin calls on Thursday, 30 January 2014 in respect of all open positions in the stock options market at around 12:00 noon.
The above arrangements are based on the clearing houses’ normal procedures. Exchange Participants have been advised to give advance notice to their clients regarding the arrangements where appropriate.