Securities Market 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.

Settlement of CNS Trades in Hong Kong Market
Settlement of CNS Trades in China Connect Market
Summary Table of Risk Management Measures for All Markets
General Risk Management of CNS Trades in All Markets
Risk Management of CNS Trades in Hong Kong Market
Risk Management of CNS Trades in Hong Kong Market - Margin Rate
Risk Management of CNS Trades in China Connect Market
Stress Testing
Guarantee Fund
Form of Collateral
Risk Management of Defective Securities
Actions Following Default of Clearing Participant