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Risk Management

Risk Management of Clearing and Settlement   

HKSCC faces two major sources of risk in its operations: the risk of guaranteeing settlement of Exchange Trades and China Connect Securities Trades, and the risk of ensuring good title to the Hong Kong securities in the depository.

HKSCC monitors and controls its exposure to risk to protect the interests of participants in CCASS, the Central Clearing And Settlement System, investors and the Hong Kong securities industry.

Under CCASS, HKSCC becomes the central risk taker by substituting itself as the central counterparty to Exchange Trades and China Connect Securities Trades to be settled under CNS, Continuous Net Settlement. This effectively guarantees settlement of Exchange Trades by Clearing Participants and China Connect Securities Trades by China Connect Clearing Participants.

Summary Table of Risk Management Measures for All Markets

Risk Management of CNS Trades
Applicable to
Securities-on-hold
Integrated Surveillance
Additional Collateral
Isolation
Marking-to-market
 Margin
 Concentration Collateral
 Mainland Settlement Deposit (MSTD) China Connect Market 
 Mainland Security Deposit (MSCD)

Updated 16 Sep 2017

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