Hong Kong Securities Clearing Company (HKSCC) Participantship 
01/09/2014 
 

Criteria

(Please also see Chapter 3 of the Rules of Hong Kong Securities Clearing Company Limited ("HKSCC"))

1)  The requirements of Direct Clearing Participantship of HKSCC are as follows :-  
    be an Exchange Participant of SEHK.
  undertake to (i) sign a Participant Agreement with HKSCC; (ii) pay to HKSCC an admission fee of HK$50,000 in respect of each Stock Exchange Trading Right held by it; and (iii) pay to HKSCC its contribution to the Guarantee Fund of HKSCC as determined by HKSCC from time to time subject to a minimum cash contribution of the higher of HK$50,000 or HK$50,000 in respect of each Stock Exchange Trading Right held by it.
open and maintain a single current account with one of the CCASS Designated Banks and execute authorisations to enable the Designated Bank to accept electronic instructions from HKSCC to credit or debit the account for CCASS money settlement, including making payment to HKSCC.
provide a form of insurance to HKSCC as security for liabilities arising from defective securities deposited by it into CCASS, if so required by HKSCC.
have a minimum liquid capital of HK$3,000,000 (as imposed by the Board of HKSCC on 3 October 2005).
 
2) The requirements of General Clearing Participantship of HKSCC are as follows :-
(a)

be a licensed corporation which is licensed to carry on Type 1 regulated activity under the Securities and 
Futures Ordinance (Chapter 571 of the laws of Hong Kong); or 

(b) be a registered institution which is registered to carry on Type 1 regulated activity under the Securities and Futures Ordinance (Chapter 571 of the laws of Hong Kong) 
(if the applicant is a licensed corporation)
(a) be a company limited by shares incorporated in Hong Kong; and
(b) have liquid capital of not less than HK$300,000,000 or its required liquid capital under the Financial   Resources Rules, whichever is the higher; or  
(c) have paid-up share capital of not less than HK$300,000,000 and have  liquid capital of not less than
HK$100,000,000 or its required liquid capital under the Financial Resources Rules, whichever is the higher. 
(if the applicant is a registered institution) 
(a) have a minimum credit rating of A3 or equivalent by a credit rating agency recognized by HKSCC; or  
(b) be a Hong Kong dollar note-issuing bank. 
demonstrate to the satisfaction of HKSCC that it has an established clearing business in securities listed and/or traded on the Exchange or it has the financial and operational capacity to establish and operate a clearing business in securities listed and/or traded on the Exchange. 
undertake, if its application is successful, to sign a Participant Agreement; to pay to HKSCC as provided in the Participant Agreement an admission fee of HK$50,000 or HK$50,000 in respect of each Stock Exchange Trading Right held by the applicant (if applicable) whichever is the higher (or such other amount as may be specified by HKSCC from time to time); to pay to HKSCC its Contribution in accordance with the Rules; to arrange indemnity insurance in a form acceptable to or as prescribed by HKSCC; and to provide, if required, assurances acceptable to HKSCC in respect of its obligations to HKSCC as a result of its participation in CCASS, including, but not limited to, liabilities for defective Eligible Securities deposited by it into CCASS, such assurances to be in the form of insurance or in such other form as shall be acceptable to HKSCC; and to procure the agreement of its Designated Bank to comply with the requirements of HKSCC for CCASS money settlement purposes.
 

Other than Direct Clearing and General Clearing Participantship, HKSCC has Clearing Agency, Custodian, Investor, Stock Lender and Stock Pledgee Participantship. Please refer to Chapter 3 of the Rules of HKSCC for their admission requirements.