Hong Kong Exchange Launches New VaR Platform for Post-Trade Clients, New Margin Requirements Based on Individual Stock Volatility Instead of Flat Margin Rate
17th June 2022 | Hong Kong
Hong Kong Exchange (HKEX) has launched a new VaR Platform for post-trade clients on 13th June 2022 (Monday), including introducing new margin requirements based on individual stock volatility instead of margin flat rate across all securities. HKEX: “HKEX is proud to launch VaR Platform, a brand new platform for post-trade clients; enabling a new risk-adjusted way of calculating the initial margin and stress testing our market default fund. This approach enables client risks to be managed in accordance with compliance and regulatory requirements, whilst at the same time maximising transparency and cost-efficiency across market participants.” HKEX Co-Chief Operating Officer John Buckley: “HKEX is committed to operating robust and resilient markets, in accordance with the best global practices. We are therefore very pleased today to be announcing another enhancement to our markets with the launch of the HKEX VaR Platform. Its enhanced margining model strengthens our resilience and boosts capital efficiency, supporting our clearing participants through margin savings on diversified portfolios. We look forward to continuing to work with our partners and stakeholders to further enhance our markets’ resilience and attractiveness, as we build the Marketplace of the Future.” The VaR Platform is available to all Clearing Participants for securities transactions in HKEX’s markets, with its new margin and stress testing models for the calculation of margins and the Default Fund. Visit: VaR Platform
“ HKEX VaR Platform: New Margin Requirements Based on Individual Stock Volatility Instead of Flat Margin Rate “
About HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is one of the world’s major exchange groups, and operates a range of equity, commodity, fixed income and currency markets. HKEX is the world’s leading IPO market and as Hong Kong’s only securities and derivatives exchange and sole operator of its clearing houses, it is uniquely placed to offer regional and international investors access to Asia’s most vibrant markets.
HKEX is also the global leader in metals trading, through its wholly owned subsidiaries, The London Metal Exchange (LME) and LME Clear Limited. This commodity franchise was further enhanced with the launch of Qianhai Mercantile Exchange (QME), in China, in 2018. HKEX launched the pioneering Shanghai-Hong Kong Stock Connect programme in 2014, further expanded with the launch of Shenzhen Connect in 2016, and the launch of Bond Connect in 2017. Visit: www.hkexgroup.com
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