Hong Kong Futures Exchange Limited (HKFE), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), has announced that with effect from the commencement of trading on Monday, 10 November 2014, the minimum margins to be collected by an Exchange Participant from its clients in respect of their dealings in the PICC Property and Casualty Co. Ltd. (PIC) futures contracts will be as outlined in the table below. The margins are based on the clearing company’s normal procedures and standard margining methodology.
Please see the 5 November 2014 HKEx news release for details of the adjustment of PIC futures contracts (http://www.hkex.com.hk/eng/newsconsul/hkexnews/2014/1411053news.htm).
For the current margins, please refer to the margin information on the HKEx website at the following linkhttp://www.hkex.com.hk/eng/market/rm/rm_dcrm/riskdata/margin_hkcc/fomargin.htm
| . Futures Contract | Margin Rate | Initial Margin (HK$) | Maintenance Margin (HK$) |
| PICC Property and Casualty Co. Ltd. (PIC: Multiplier = 2,000) | Full Rate
Spread Rate
|
2,194 /lot
658 /spread
|
1,751 /lot
525 /spread
|
| PICC Property and Casualty Co. Ltd. (PIA: Multiplier = 2,079) | Full Rate
Spread Rate |
2,280 /lot
684 /spread |
1,820 /lot
546 /spread |
HKFE emphasises that the above are minimum rates and Exchange Participants should set their margin requirements according to their clients’ individual circumstances.
