On Jun. 6, 2025, HKEX said HK SFC approved rule and procedural amendments re enhancements to intra-day variation adjustment and margin call mechanisms.
SEHK Options Clearing House Limited (which is also referred to as SEOCH) may demand intra-day margin from participants each trading day according to prescribed schedule published on HKEX website, except in exceptional circumstances.
Reference to intra-day margin being triggered by block trades has been removed.
The HKCC will call for intra-day variation adjustments on each trading day for all open contracts across all markets which are held by an HKCC participant; allows intra-day variation adjustments after cutoff time which is specified by clearing house.
Removed reference to contracts with underlying instruments similar to market being adjusted, adjustments being triggered by block trades executed at certain prices.
The amendments will come into effect on Jun. 23, 2025.
On Mar. 21, HKEX issued circular in order to implement enhancements.
HKEX said it will implement enhancements to its intra-day margin call arrangements as well as intra-day variation adjustment (VA) call arrangements from Jun. 23, 2025.
Intra-Day Margin Calls
Two scheduled intra-day margin calls will be introduced at 9:45am and 3pm each trading day, with 3pm call replacing current mandatory call before a HK public holiday.
Measure aims to improve predictability, help clearing participants (CPs) plan funding.
Ad hoc intra-day margin calls will continue and may be triggered by market volatility or exceptional events such as geopolitical developments or major policy changes.
Trigger for ad hoc calls remains at 50% margin erosion, and they will focus on selected series such as Tracker Fund of Hong Kong, Hang Seng China Enterprises Index ETF.
Intra-Day Variation Adjustment Calls
HKEX will introduce two scheduled intra-day VA calls daily at 10:30am and 3pm, with 3pm call replacing the pre-holiday mandatory VA call, applies to all open positions.
Changes are intended to improve clarity, support better funding management for CPs.
Ad hoc intra-day VA calls will continue as needed, triggered at 50% margin erosion.
HKEX explained that monitoring will include key futures contracts like Hang Seng Index, Hang Seng China Enterprises Index; all HKFE Clearing Corporation Limited (which is also referred to as HKCC) products will now be covered under ad hoc calls.
Operational framework, including timelines and clearing procedures, remains same.
Next Steps
Relevant amendments to Rules and procedures of HKCC will be issued in due course.
HKEX explained that the HK SFC has approved the changes and the rule amendments.
Effectiveness
The new arrangement and amendments will be effective from Jun. 23, 2025.
May 2025 Options Clearing Rules
On May 23, 2025, HKEX prepared the amendments to the Options clearing rules to align with the implementation of the enhancement to intra-day VA/margin call above.
On the same day, HKCC and the SEHK Options Clearing House Ltd issued circulars to remind CPs the policy enhancements and operational arrangements re the same.
All CPs are reminded to make necessary arrangements in advance of the Jun. 23 implementation of the new measure to ensure financial and operational readiness.
Jun. 2025 Revisions
On Jun. 6, 2025, HKEX said HK SFC approved rule and procedural amendments re enhancements to intra-day variation adjustment and margin call mechanisms.
SEHK Options Clearing House Limited (which is also referred to as SEOCH) may demand intra-day margin from participants each trading day according to prescribed schedule published on HKEX website, except in exceptional circumstances.
Reference to intra-day margin being triggered by block trades has been removed.
The HKCC will call for intra-day variation adjustments on each trading day for all open contracts across all markets which are held by an HKCC participant; allows intra-day variation adjustments after cutoff time which is specified by clearing house.
Removed reference to contracts with underlying instruments similar to market being adjusted, adjustments being triggered by block trades executed at certain prices.
The amendments will come into effect on Jun. 23, 2025.
