On Jun. 18, HKEX updated guidelines of the HK Futures Exchange.
HKEX issued circular that updates and clarifies the margin requirements under rule 617 of the Rules, regulations and procedures of Hong Kong Futures Exchange Limited.
Follows HKEX Oct. 2024 updated the guidelines on margin procedures, see #231798.
Overview of Circular
Exchange participants (EPs) must receive sufficient collateral before transacting.
A client must show a track record of meeting margin calls and maintaining financial soundness, with no defaults for at least one year (or 3 months for newer clients).
Maintain sound financial position supported by recent trading and financial documents.
EPs must receive margin collateral before transacting for exclusive day traders.
Client is exempt if they made no day trades in past month or held overnight positions / traded on ten days in the past year; EPs must review and document this monthly.
EPs must set trading limits for established clients based on financial standing, review limits at least annually; these limits should comply with Risk management guidelines.
Must review established client status annually, reassess promptly if concerns arise, maintain proper documentation of assessments and approvals per HK SFC rules.
Effectiveness
EPs are expected to fully comply with the updated requirements by Jul. 18, 2025.
Regulators
HKEX
Entity Types
B/D; Exch
Reference
Cir MSM/005/2025, 6/18/2025
Functions
Compliance; Financial; Legal; Record Retention; Reporting; Risk; Trade Reporting; Trading
