Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce it will implement enhancements to its margin collateral arrangements at its securities and derivatives clearing houses. The enhancements are part of HKEX’s ongoing commitment to boost market efficiency and lower costs for market participants.

The new arrangements include changing how HKEX calculates the interest paid on cash margin collateral, and lowering accommodation charges for non-cash margin collateral posted at HKEX’s clearing houses.

HKEX Chief Operating Officer, Vanessa Lau, said: “HKEX is fully committed to continuously elevating the vibrancy, resilience, and competitiveness of Hong Kong’s markets, and we are pleased to be announcing these new arrangements that will enhance collateral efficiency. These enhancements will better support market participants in executing their trading strategies and managing their investment risks. Taken together with the recent increases to the position limits for stock options and index derivatives, the capacity for cleared positions has materially increased while the capital efficiency of holding these positions is also being enhanced. We look forward to continue working closely with all our market stakeholders to develop more initiatives that advance Hong Kong’s position as a leading risk management centre.”

For cash collateral, interest payments and charges will be calculated daily based on an approach that aligns with international peers, paying an overnight reference rate, less a handling fee. This approach will align across Hong Kong Securities Clearing Company Limited (HKSCC), HKFE Clearing Corporation Limited (HKCC) and The SEHK Options Clearing House Limited (SEOCH), and across all currencies that are accepted as collateral. The handling fee will initially start at 0.8 per cent between October 2025 and December 2026, and decline 10 basis points each year until reaching 0.5 per cent by the end of 2028.

For non-cash collateral, the annual accommodation charge will be reduced to 0.25 per cent from 0.5 per cent.

The new interest payment policy and accommodation charges, which have been approved by the Securities and Futures Commission (SFC), will take effect from 2 October 2025.

Please refer to the circulars published by HKSCC, HKCC and SEOCH for further information.

Source: HKEX