On Oct. 30, 2025, HKEX revised its stress testing default assumption for RF sizing from largest + 5th largest CPs to two largest CPs and their affiliates (CP group).
RF threshold will increase from HKD 2.7bn to HKD 3.2bn, effective Dec. 1, 2025.
If the RF threshold is reached, RF additional margin will be collected from a CP group if its net projected loss exceeds 50% of the RF threshold.
If RF additional margin is triggered, payment notification will be sent to CP at around 2am, and settlement arrangements will follow existing timelines and methods.
On Feb. 10, HKEX revised stress test assumptions for reserve funds.
HKEX issued revisions to the stress testing assumptions for reserve fund (RF) sizing.
It revised the default assumptions from the current largest and fifth largest clearing participants (CPs) to the two largest CPs and their affiliates for RF sizing purposes.
It aims to facilitate HKEX's estimation and funding preparation of its RF contributions.
Participants can submit a request to HKEX via email for their simulated results.
Effectiveness
The revisions will take effect on Apr. 3, 2023.
Mar. 2023 Reminder
On Mar. 23, 2023, HKEX reminded CPs to prepare funding for their RF contributions.
If RF threshold of HKD 7.3bn is reached, RF additional margin will be collected from a CP group if the net projected loss of the CP group is over 50% of the RF.
Oct. 2025 Assumption Revised
On Oct. 30, 2025, HKEX revised its stress testing default assumption for RF sizing from largest + 5th largest CPs to two largest CPs and their affiliates (CP group).
RF threshold will increase from HKD 2.7bn to HKD 3.2bn, effective Dec. 1, 2025.
If the RF threshold is reached, RF additional margin will be collected from a CP group if its net projected loss exceeds 50% of the RF threshold.
If RF additional margin is triggered, payment notification will be sent to CP at around 2am, and settlement arrangements will follow existing timelines and methods.
