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HKEX Launches VaR Platform for Clearing Participants

Market Operations
13 Jun 2022

Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to today (Monday) announce the launch of its new VaR Platform for post-trade clients, and the introduction of new portfolio margining in its securities market. 

The new VaR Platform will introduce margin requirements based on individual stock volatility, instead of the previously applied flat margin rate across all securities. This will significantly strengthen the resilience of the securities clearing house, in line with evolving international regulatory standards. The new VaR Platform will also promote enhanced transparency and cost-efficiency for HKEX market participants.

HKEX Co-Chief Operating Officer John Buckley said: “HKEX is committed to operating robust and resilient markets, in accordance with the best global practices. We are therefore very pleased today to be announcing another enhancement to our markets with the launch of the HKEX VaR Platform. Its enhanced margining model strengthens our resilience and boosts capital efficiency, supporting our clearing participants through margin savings on diversified portfolios. We look forward to continuing to work with our partners and stakeholders to further enhance our markets’ resilience and attractiveness, as we build the Marketplace of the Future.” 

The VaR Platform is available to all Clearing Participants for securities transactions in HKEX’s markets, with its new margin and stress testing models for the calculation of margins and the Default Fund.

Please refer to HKEX website for more details of VaR Platform.

 

 

About HKEX

Hong Kong Exchanges and Clearing Limited (HKEX) is one of the world’s major exchange groups, and operates a range of equity, commodity, fixed income and currency markets.  HKEX is the world’s leading IPO market and as Hong Kong’s only securities and derivatives exchange and sole operator of its clearing houses, it is uniquely placed to offer regional and international investors access to Asia’s most vibrant markets.

HKEX is also the global leader in metals trading, through its wholly owned subsidiaries, The London Metal Exchange (LME) and LME Clear Limited.  This commodity franchise was further enhanced with the launch of Qianhai Mercantile Exchange (QME), in China, in 2018.

HKEX launched the pioneering Shanghai-Hong Kong Stock Connect programme in 2014, further expanded with the launch of Shenzhen Connect in 2016, and the launch of Bond Connect in 2017.

www.hkexgroup.com

 

 

Ends

Updated 13 Jun 2022