Hong Kong Futures Exchange Limited (HKFE), a subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), is set to raise minimum margin requirements for all HK Futures products offered by the trading venue. The changes are due to take effect at market opening on Thursday, November 13, 2014.
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The changes include an increase in initial client margin from HK$1,100 per lot to HK$1,340 per lot. Maintenance margin rates will rise from HK$878 to HK$1,080 per lot. Overall, the margin increases roughly amount to a 20% across-the-board increase in trading fees for clients trading HKEx futures contracts.
HKFE’s parent company, HKEx, recently published its quarterly results showing performance for the first nine months of 2014. Alongside improving business activity indicators and a net YTD income of $3.3 billion, HKEx is pushing to extend its global reach via key cross-border partnerships and for more market influence via its subsidiaries.