HKEX Short Option Minimum Charge


On Dec. 5, HKEX reviewed and revised short option minimum charge.


  • HKEX HKFE Clearing Corporation and SEHK Options Clearing House completed reviews of short option minimum (SOM) charge, decided to revise for all stock option contracts.
  • Revision
  • SOM charge for all stock option contracts will be reduced from the current 10% to 5%.
  • Serves as margin parameter to set lower bound margin requirement for short option positions; revised rate applies to both clearing house margin, client margin calculations.
  • Specified SOM charge is intended for firm’s financially strongest clients, participants are advised to adjust margin requirements based on individual client circumstances.
  • Effectiveness
  • The revision will be effective from Jan. 2, 2025.

Regulators HKEX
Entity Types B/D; Exch
Reference Cir RC/GRM/004/2024, RC/GRM/005/2024, 12/5/2024
Functions Compliance; Financial; Trading; Treasury
Countries Hong Kong
Category
State
Products Clearing; Derivatives; Securities
Regions AP
Rule Type Final
Rule Date 12/5/2024
Effective Date 1/2/2025
Rule Id 235806
Linked to N/A
Reg. Last Update 12/5/2024
Report Section International

Last substantive update on 12/09/2024