HKFE To Revise Margins For HIBOR Futures Contracts

Hong Kong Futures Exchange Limited (HKFE), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), announced today that as the contract sizes of One-Month and Three-Month HIBOR Futures Contracts will increase by five times effective from 27 May 2002, with effect from the commencement of trading on Monday, 27 May 2002, the minimum margins for One-Month and Three-Month HIBOR Futures to be collected by an Exchange Participant from its clients in respect of their dealings will be as outlined in the table below. The adjustments are based on the clearing company's normal procedures and standard margining methodology.

*Amounts in brackets are the original margin rates

Futures Contract	Margin Rate	Initial Margin (HK$)		Maintenance Margin (HK$)

One-Month HIBOR	Full Rate Spread Rate	2,625 (525)	per lot	2,100 (420)	per lot
		Please refer to		the attached table

Three-Month HIBOR	Full Rate Spread Rate	3,250 (650)	per lot	2,600 (520)	per lot
		Please refer to		the attached table

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

Spread Margin Rates
for One-Month HIBOR Futures

Spread Combination	Initial Margin	Maintenance Margin
1st month vs 4th month 1st month vs 5th month 1st month vs 6th month	HK$3,125 per spread	HK$2,500 per spread
1st month vs 2nd month 1st month vs 3rd month 2nd month vs 4th month 2nd month vs 5th month 2nd month vs 6th month 3rd month vs 4th month 3rd month vs 5th month 3rd month vs 6th month	HK$2,500 Per spread	HK$2,000 per spread
4th month vs 5th month 4th month vs 6th month 5th month vs 6th month	HK$1,875 per spread	HK$1,500 per spread
2nd month vs 3rd month	HK$1,125 per spread	HK$900 per spread

Spread Margin Rates
for Three-Month HIBOR Futures

Spread Combination	Initial Margin	Maintenance Margin
1st month vs 7th month 1st month vs 8th month 1st month vs 9th month 1st month vs 10th month 2nd month vs 7th month 2nd month vs 8th month 2nd month vs 9th month 2nd month vs 10th month 3rd month vs 7th month 3rd month vs 8th month 3rd month vs 9th month 3rd month vs 10th month	HK$3,750 Per spread	HK$3,000 per spread
4th month vs 7th month 4th month vs 8th month 4th month vs 9th month 4th month vs 10th month 5th month vs 7th month 5th month vs 8th month 5th month vs 9th month 5th month vs 10th month 6th month vs 7th month 6th month vs 8th month 6th month vs 9th month 6th month vs 10th month	HK$3,000 per spread	HK$2,400 per spread
1st month vs 4th month 1st month vs 5th month 1st month vs 6th month 2nd month vs 4th month 2nd month vs 5th month 2nd month vs 6th month 3rd month vs 4th month 3rd month vs 5th month 3rd month vs 6th month 7th month vs 8th month 7th month vs 9th month 7th month vs 10th month 8th month vs 9th month 8th month vs 10th month 9th month vs 10th month	HK$2,500 per spread	HK$2,000 per spread
1st month vs 2nd month 1st month vs 3rd month 2nd month vs 3rd month 4th month vs 5th month 4th month vs 6th month 5th month vs 6th month	HK$1,750 per spread	HK$1,400 per spread