Form of Collateral 
10/10/2017 
 

Form of Collateral

The following table sets out the types of collateral accepted by HKSCC for Clearing Participants and China Connect Clearing Participants to meet their obligations in Hong Kong market and China Connect Markets.

Acceptable Collateral

Marks, Concentration Collateral, Margin and Additional Collateral for Hong Kong Market

MSTD, MSCD and Additional Collateral for China Connect Markets

Guarantee Fund

Cash

HKD

RMB

USD

 Haircut

A Clearing Participant may select a Preferred Single Settlement Currency to settle all its Marks, Concentration Collateral and Margin requirements in that currency. To mitigate foreign exchange risk, haircut rates will be applied in converting the required Marks, Concentration Collateral and Margin obligations to the preferred currency. Participants may enquire the applicable haircut rates in CCMS.

Where the currency of the cash collateral is different from the settlement currency of the contract, the following haircuts rates will be applied:

Denominated Currency

Current Haircut Rate

    RMB

    3.7%

USD

0.7%

Previous Haircut Rate