Hong Kong Futures Exchange Limited To Revise Margins For Microsoft Corporation Futures Contract

Hong Kong Futures Exchange Limited (HKFE), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), will revise the margin rate for Microsoft Corporation Futures Contract with effect from 18 February 2003, due to a two-for-one stock split.

With effect from the commencement of trading on Tuesday, 18 February 2003, the minimum margins to be collected by an Exchange Participant from its clients in respect of their dealings in the following futures contracts 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 current margins, please refer to HKEx's website (http://www.hkex.com.hk) and see Trading Information - Futures & Options in the Derivatives Market section.

Futures Contract	Margin Rate	Initial Margin  (USD)	Maintenance Margin (USD)
Microsoft Corporation (MSF with contract multiplier 100)	Full Rate	353 per lot	282.40 per lot
	Spread Rate	53 /lot/side	42.40 /lot/side
Microsoft Corporation (Temporary contract MSA with contract multiplier 200)	Full Rate	706 per lot	564.80 per lot
	Spread Rate	106 /lot/side	84.80 /lot/side

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