Hong Kong Futures Exchange Announces Revised Margins For Three-Month HIBOR Futures Contract

Hong Kong Futures Exchange Limited (HKFE), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), yesterday (8 October) informed Exchange Participants that with effect from the commencement of trading on Thursday, 9 October 2003 (today), the minimum margins to be collected by an Exchange Participant from its clients in respect of their dealings in the HKFE's Three-month HIBOR Futures contract will be as outlined in the table below. The adjustments are based on the clearing company's normal procedures and standard margining methodology.

For the previous margins, please refer to the HKEx website (http://www.hkex.com.hk) and see Trading Information - Futures & Options in the Derivatives Market section.

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

Three-Month HIBOR	Full Rate	4,000 per lot	3,200 per lot
Three-Month HIBOR	Spread Rate	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 Three-Month HIBOR Futures

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Spread Combination	Initial Margin	Maintenance Margin
1st month vs 6th month 1st month vs 7th month 1st month vs 8th month 1st month vs 9th month 1st month vs 10th month 2nd month vs 6th month 2nd month vs 7th month 2nd month vs 8th month 2nd month vs 9th month 2nd month vs 10th month 3rd month vs 6th month 3rd month vs 7th month 3rd month vs 8th month 3rd month vs 9th month 3rd month vs 10th month	HK$6,875 per spread	HK$5,500 per spread
4th month vs 6th month 4th month vs 7th month 4th month vs 8th month 4th month vs 9th month 4th month vs 10th month 5th month vs 6th month 5th month vs 7th month 5th month vs 8th month 5th month vs 9th month 5th month vs 10th month	HK$5,375 per spread	HK$4,300 per spread
1st month vs 4th month 1st month vs 5th month 2nd month vs 4th month 2nd month vs 5th month 3rd month vs 4th month 3rd month vs 5th month	HK$3,875 per spread	HK$3,100 per spread
6th month vs 7th month 6th month vs 8th month 6th month vs 9th month 6th month vs 10th 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$3,000 per spread	HK$2,400 per spread
4th month vs 5th month	HK$2,125 per spread	HK$1,700 per spread
1st month vs 2nd month 1st month vs 3rd month 2nd month vs 3rd month	HK$1,500 per spread	HK$1,200 per spread