HKFE Sets Margin Rates For Mini-HSI Futures And Margin Offset between Mini-HSI Futures And HSI Futures

Hong Kong Futures Exchange (HKFE), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited, announced today (Tuesday) that margin rates for the Mini-Hang Seng Index (Mini-HSI) Futures contract will be one-fifth of the margin rates for the Hang Seng Index (HSI) Futures contract. HKFE also said it would allow a hundred per cent margin offset between Mini-HSI Futures contracts and HSI Futures contracts at a ratio of 5 to 1.

The table below shows the minimum margins to be collected by an Exchange Participant from its clients in respect of their dealings in Mini-HSI Futures contracts, which begin trading on Monday, 9 October 2000, based on the prevailing margins for HSI Futures contracts. The margin rates for Mini-HSI Futures will be revised whenever the margin rates for HSI Futures are revised.

Mini-Hang Seng Index: Margin Rates – Full Rates (Initial margin): USD15.500 per lot; Maintenance Margin: USD 12,400 per lot

Futures: Margin Rates – Margin Rates - Spread rates (Initial Margin): USD750 per lot/side; Maintenance Margin: USD 600 per lot/side

HKFE emphasised that the above are minimum rates and Exchange Participants should set their margin requirements according to their clients’ individual circumstances.