Third Party Clearing by General Clearing Participants 
11/06/2014 
 

 

An Exchange Participant (EP) of Hong Kong Futures Exchange Limited (HKFE) or an Options Exchange Participant (OTEP) of The Stock Exchange of Hong Kong Limited (SEHK) must have arrangements in place for the clearing and settlement of contracts arising from its business at these Exchanges.   It can either perform the clearing and settlement functions directly by registering itself under one category of participantship of the respective clearing houses or it can outsource its clearing and settlement functions to a General Clearing Participant (GCP).   In the latter case, the EP or OTEP will become a Non-clearing Participant (NCP).   A NCP has to maintain a valid, binding and effective Clearing Agreement with its GCP pursuant to which that GCP agrees to clear the contracts of the NCP. 

Documents/Forms required for change of Participantship of HKCC/SEOCH and Set up / Change of Clearing Arrangement are as follows:

 

 

Change of Clearing Participantship [1]

Set up / Change of Clearing Arrangement

From CP/DCP
(of HKCC/SEOCH)
to GCP, and
vice versa

From CP/DCP
(of HKCC/SEOCH)
to NCP

Appointment of a GCP by a newly admitted EP/OTEP

Change of appointment from one GCP to another by an existing NCP

Relevant Application Forms / Supporting Documents

HKCC
1.

Form 1G -
Application for Change of
Participantship of HKCC

   

2.

Form 11 – Notification of Execution of Clearing Agreement

 

3.

Form 12 – Notification of Termination of Clearing Agreement

 

(for change from GCP to CP)

 

4.

Letter of Resignation Notice from CP to HKCC for Termination of Clearing Participantship

5.

An Operations and Risk Control
Plan – Revised with areas on Third
Party Clearing  (Please refer to EN1G)

6.

DCASS CG/NG/Testing Line Application and/or Change of SDNet Bandwidth Notification Form / CCASS / CCMS SDNet Line Service Notification Form, if needed

SEOCH
1. Notification Letter for Change of Participantship of SEOCH
2.

Form 11 – Notification of Execution of Clearing Agreement

3.

Form 12 – Notification of Termination of Clearing Agreement

(for change from GCP to DCP)

 

 

4.

Letter of Resignation Notice from
DCP to SEOCH for Termination of
Clearing Participantship

5.

An Operations and Risk Control
Plan – Revised with areas on Third
Party Clearing (Please refer to EN1G)

6.

DCASS CG/NG/Testing Line Application and/or Change of SDNet Bandwidth Notification Form / CCASS / CCMS SDNet Line Service Notification Form, if needed

Remark:

[1] With respect to any request for a change in participant's status, it should be noted that a separate review will be conducted according to the admission criteria of the participantship under application.

 

If a NCP wants to become a CP/DCP or GCP (of HKCC/SEOCH), please refer to the “Explanatory Notes for Application for Participantship” and “Admission Criteria and Operational Requirements for Becoming a Participant of HKCC/SEOCH” for documents/forms required.

 For the current list of GCP of HKCC and SEOCH, please refer to the following links under category “GCP”:

List of HKCC General Clearing Participants
List of SEOCH General Clearing Participants