Principles for Financial Market Infrastructures (PFMI) Disclosure 
25/09/2017 
 
HKEX operates four clearing houses, which are the only recognised clearing houses in Hong Kong: Hong Kong Securities Clearing Company Limited (HKSCC), HKFE Clearing Corporation Limited (HKCC), the SEHK Options Clearing House Limited (SEOCH) and OTC Clearing Hong Kong Limited (OTC Clear).

HKSCC, HKCC, SEOCH and OTC Clear have each implemented a comprehensive risk management framework which is designed to ensure the timely settlement of relevant securities transactions, derivatives contracts, and stock options transactions by adequately controlling credit, market and liquidity risks.  Each clearing house also has appropriate policies, procedures and controls in place to manage the additional risks that its services are exposed to, including legal risk, settlement risk, general business risk, custody and investment risks, and operational risk.

The Securities and Futures Commission of Hong Kong (SFC) requires recognised clearing houses (RCH) to observe and apply the Principles for Financial Market Infrastructures (PFMI) published by the Committee on Payment and Settlement Systems (CPSS)[1] and the International Organization of Securities Commissions (IOSCO) in April 2012.  

HKSCC, HKCC, SEOCH and OTC Clear’s approaches to observing each applicable principle in the PFMI is summarised in their disclosure documents, in accordance with the guidelines set forth in the ‘Disclosure framework and Assessment methodology’ published by CPSS-IOSCO in December 2012.


[1] CPSS changed its name to the Committee on Payments and Market Infrastructures (CPMI) on 1 September 2014. Please note that references to reports published before that date use the Committee’s old name.