HKFE Announces Revised Margins for Futures Contracts

Market Operations

31 Oct 2001

Hong Kong Futures Exchange (HKFE), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), announced today (Wednesday) that with effect from the commencement of trading on Thursday, 1 November, the minimum margins to be collected by an Exchange Participant from its clients in respect of their dealings in the following futures contracts will be as outlined in the table below. The adjustments are based on the clearing company's normal procedures and standard margining methodology.

* Amounts in brackets are the original margin rates:

Futures Contract	Margin Rate	Initial Margin (HK$)	Maintenance Margin (HK$)
MSCI China Free Index	Full Rate Spread Rate	22,500 (23,000) per lot 3,500 (3,500) /lot/side	18,000 (18,400) per lot 2,800 (2,800) /lot/side
One-Month HIBOR	Full Rate	925 (975) per lot	740 (780) per lot
One-Month HIBOR	Spread Rate	Please refer to the attached table
Three-Month HIBOR	Full Rate	925 (1,125) per lot	740 (900) per lot
Three-Month HIBOR	Spread Rate	Please refer to the attached table
HSBC Holdings plc	Full Rate Spread Rate	4,240 (3,880) per lot 640 (590) /lot/side	3,392 (3,104) per lot 512 (472) /lot/side
Pacific Century CyberWorks Ltd	Full Rate Spread Rate	310 (300) per lot 50 (45) /lot/side	248 (240) per lot 40 (36) /lot/side
Cheung Kong (Holdings) Ltd	Full Rate Spread Rate	8,850 (9,700) per lot 1,330 (1,455) /lot/side	7,080 (7,760) per lot 1,064 (1,164) /lot/side
Swire Pacific Ltd "A" Shares	Full Rate Spread Rate	2,450 (2,875) per lot 370 (435) /lot/side	1,960 (2,300) per lot 296 (348) /lot/side
CITIC Pacific Ltd	Full Rate Spread Rate	2,650 (2,680) per lot 400 (402) /lot/side	2,120 (2,144) per lot 320 (322) /lot/side
China Resources Enterprise Ltd	Full Rate Spread Rate	3,200 (3,320) per lot 480 (500) /lot/side	2,560 (2,656) per lot 384 (400) /lot/side
Shanghai Industrial Holdings Ltd	Full Rate Spread Rate	1,330 (1,280) per lot 200 (195) /lot/side	1,064 (1,024) per lot 160 (156) /lot/side
Hongkong Electric Holdings Ltd	Full Rate Spread Rate	975 (925) per lot 150 (140) /lot/side	780 (740) per lot 120 (112) /lot/side
Hang Seng Bank Ltd	Full Rate Spread Rate	715 (655) per lot 110 (100) /lot/side	572 (524) per lot 88 (80) /lot/side
Henderson Land Development Co Ltd	Full Rate Spread Rate	4,100 (4,440) per lot 615 (670) /lot/side	3,280 (3,552) per lot 492 (536) /lot/side
Hutchison Whampoa Ltd	Full Rate Spread Rate	9,450 (9,700) per lot 1,420 (1,455) /lot/side	7,560 (7,760) per lot 1,136 (1,164) /lot/side
Sun Hung Kai Properties Ltd	Full Rate Spread Rate	8,100 (8,120) per lot 1,215 (1,220) /lot/side	6,480 (6,496) per lot 972 (976) /lot/side
CLP Holdings Ltd	Full Rate Spread Rate	940 (1,100) per lot 145 (165) /lot/side	752 (880) per lot 116 (132) /lot/side
The Wharf (Holdings) Ltd	Full Rate Spread Rate	1,940 (1,890) per lot 295 (285) /lot/side	1,552 (1,512) per lot 236 (228) /lot/side
New World Development Co Ltd	Full Rate Spread Rate	1,180 (1,240) per lot 180 (190) /lot/side	944 (992) per lot 144 (152) /lot/side
Legend Holdings Ltd	Full Rate Spread Rate	1,640 (1,580) per lot 250 (240) /lot/side	1,312 (1,264) per lot 200 (192) /lot/side
China Mobile (HK) Ltd	Full Rate Spread Rate	2,475 (2,825) per lot 375 (425) /lot/side	1,980 (2,260) per lot 300 (340) /lot/side
The Bank of East Asia Ltd	Full Rate Spread Rate	320 (300) per lot 50 (45) /lot/side	256 (240) per lot 40 (36) /lot/side
Hong Kong and China Gas Co Ltd	Full Rate Spread Rate	620 (600) per lot 95 (90) /lot/side	496 (480) per lot 76 (72) /lot/side
MTR Corporation Ltd	Full Rate Spread Rate	600 (625) per lot 90 (94) /lot/side	480 (500) per lot 72 (75) /lot/side
China Merchants Holdings (International) Co Ltd	Full Rate Spread Rate	1,200 (1,460) per lot 180 (220) /lot/side	960 (1,168) per lot 144 (176) /lot/side
Johnson Electric Holdings Ltd	Full Rate Spread Rate	950 (925) per lot 145 (140) /lot/side	760 (740) per lot 116 (112) /lot/side
Cathay Pacific Airways Ltd	Full Rate Spread Rate	1,380 (1,690) per lot 210 (255) /lot/side	1,104 (1,352) per lot 168 (204) /lot/side
Hong Kong Exchanges and Clearing Ltd	Full Rate Spread Rate	3,460 (3,360) per lot 520 (505) /lot/side	2,768 (2,688) per lot 416 (404) /lot/side
Li & Fung Ltd	Full Rate Spread Rate	3,480 (4,200) per lot 530 (630) /lot/side	2,784 (3,360) per lot 424 (504) /lot/side
China Unicom Ltd	Full Rate Spread Rate	3,300 (3,700) per lot 500 (555) /lot/side	2,640 (2,960) per lot 400 (444) /lot/side
PetroChina Co Ltd	Full Rate Spread Rate	280 (340) per lot 50 (55) /lot/side	224 (272) per lot 40 (44) /lot/side
Cheung Kong Infrastructure Holdings Ltd	Full Rate Spread Rate	940 (840) per lot 145 (125) /lot/side	752 (672) per lot 116 (100) /lot/side
Cosco Pacific Ltd	Full Rate Spread Rate	1,100 (1,480) per lot 170 (222) /lot/side	880 (1,1840) per lot 136 (178) /lot/side

Futures Contract	Margin Rate	Initial Margin (HK$)	Maintenance Margin (HK$)

US Stock Futures Contracts

	Margin Rate	Initial Margin (US$)	Maintenance Margin (US$)
Cisco Systems Incorporated	Full Rate Spread Rate	350 (310) per lot 55 (46.50) /lot/side	280 (248) per lot 44 (37.20) /lot/side
IBM Corporation	Full Rate Spread Rate	795 (920) per lot 152.50 (152.50) /lot/side	636 (736) per lot 122 (122) /lot/side
Intel Corporation	Full Rate Spread Rate	405 (475) per lot 65 (75) /lot/side	324 (380) per lot 52 (60) /lot/side
Microsoft Corporation	Full Rate Spread Rate	725 (805) per lot 110 (125) /lot/side	580 (644) per lot 88 (100) /lot/side
Oracle Corporation	Full Rate Spread Rate	275 (310) per lot 45 (50) /lot/side	220 (248) per lot 36 (40) /lot/side

	Margin Rate	Initial Margin (US$)	Maintenance Margin (US$)

Japan Stock Futures Contracts

	Margin Rate	Initial Margin (JPY)	Maintenance Margin (JPY)
NTT DoCoMo Incorporated	Full Rate Spread Rate	318,000 (296,000) per lot 47,700 (44,400) /lot/side	254,400 (236,800) per lot 38,160 (35,520) /lot/side
Sony Corporation	Full Rate Spread Rate	87,000 (90,000) per lot 13,050 (13,500) /lot/side	69,600 (72,000) per lot 10,440 (10,800) /lot/side
Nippon Telegraph & Telephone Corporation	Full Rate Spread Rate	79,000 (70,000) per lot 12,500 (12,500) /lot/side	63,200 (56,000) per lot 10,000 (10,000) /lot/side
Fujitsu Ltd	Full Rate Spread Rate	140,000 (148,000) per lot 21,000 (22,200) /lot/side	112,000 (118,400) per lot 16,800 (17,760) /lot/side
Toyota Motor Corporation	Full Rate Spread Rate	45,400 (43,300) per lot 6,810 (6,495) /lot/side	36,320 (34,640) per lot 5,448 (5,196) /lot/side

	Margin Rate	Initial Margin (JPY)	Maintenance Margin (JPY)

Korea Stock Futures Contracts

	Margin Rate	Initial Margin (KRW)	Maintenance Margin (KRW)
Korea Electric Power Corporation	Full Rate Spread Rate	22,600 (28,900) per lot 3,525 (4,335) /lot/side	18,080 (23,120) per lot 2,820 (3,468) /lot/side
Korea Telecom Corporation	Full Rate Spread Rate	52,000 (62,350) per lot 7,800 (9,355) /lot/side	41,600 (49,880) per lot 6,240 (7,484) /lot/side
Samsung Electronics Co Ltd	Full Rate Spread Rate	255,000 (316,000) per lot 38,250 (47,400) /lot/side	204,000 (252,800) per lot 30,600 (37,920) /lot/side
SK Telecom Co Ltd	Full Rate Spread Rate	280,000 (276,000) per lot 42,000 (41,400) /lot/side	224,000 (220,800) per lot 33,600 (33,120) /lot/side
Kookmin Bank	Full Rate Spread Rate	22,900 (27,820) per lot 3,435 (4,175) /lot/side	18,320 (22,256) per lot 2,748 (3,340) /lot/side

	Margin Rate	Initial Margin (KRW)	Maintenance Margin (KRW)

Taiwan Stock Futures Contracts

	Margin Rate	Initial Margin (NT$)	Maintenance Margin (NT$)
Mosel Vitelic Incorporated	Full Rate Spread Rate	1,550 (1,820) per lot 235 (275) /lot/side	1,240 (1,456) per lot 188 (220) /lot/side
Ritek Corporation	Full Rate Spread Rate	5,700 (6,000) per lot 855 (900) /lot/side	4,560 (4,800) per lot 684 (720) /lot/side
Taiwan Semiconductor Manufacturing Co Ltd	Full Rate Spread Rate	8,600 (8,630) per lot 1,290 (1,295) /lot/side	6,880 (6,904) per lot 1,032 (1,036) /lot/side
United Microelectronics Corporation	Full Rate Spread Rate	5,100 (5,320) per lot 765 (800) /lot/side	4,080 (4,256) per lot 612 (640) /lot/side
Winbond Electronics Corporation	Full Rate Spread Rate	3,050 (3,500) per lot 460 (525) /lot/side	2,440 (2,800) per lot 368 (420) /lot/side

	Margin Rate	Initial Margin (NT$)	Maintenance Margin (NT$)

HKFE emphasised that the above are minimum rates and Exchange Participants should set their margin requirements according to their clients' individual circumstances.

Spread Margin Rates
for One-Month HIBOR Futures

Spread Combination	Initial Margin	Maintenance Margin
1st month vs 4th month 1st month vs 5th month 1st month vs 6th month	HK$625 per spread	HK$500 per spread
1st month vs 2nd month 1st month vs 3rd month 2nd month vs 4th month 2nd month vs 5th month 2nd month vs 6th month 3rd month vs 4th month 3rd month vs 5th month 3rd month vs 6th month	HK$500 per spread	HK$400 per spread
4th month vs 5th month 4th month vs 6th month 5th month vs 6th month	HK$375 per spread	HK$300 per spread
2nd month vs 3rd month	HK$225 per spread	HK$180 per spread

Spread Combination	Initial Margin	Maintenance Margin

Spread Margin Rates
for Three-Month HIBOR Futures

Spread Combination	Initial Margin	Maintenance Margin
1st month vs 7th month 1st month vs 8th month 1st month vs 9th month 1st month vs 10th month 2nd month vs 7th month 2nd month vs 8th month 2nd month vs 9th month 2nd month vs 10th month 3rd month vs 7th month 3rd month vs 8th month 3rd month vs 9th month 3rd month vs 10th month	HK$750 per spread	HK$600 per spread
4th month vs 7th month 4th month vs 8th month 4th month vs 9th month 4th month vs 10th month 5th month vs 7th month 5th month vs 8th month 5th month vs 9th month 5th month vs 10th month 6th month vs 7th month 6th month vs 8th month 6th month vs 9th month 6th month vs 10th month	HK$600 per spread	HK$480 per spread
1st month vs 4th month 1st month vs 5th month 1st month vs 6th month 2nd month vs 4th month 2nd month vs 5th month 2nd month vs 6th month 3rd month vs 4th month 3rd month vs 5th month 3rd month vs 6th month 7th month vs 8th month 7th month vs 9th month 7th month vs 10th month 8th month vs 9th month 8th month vs 10th month 9th month vs 10th month	HK$500 per spread	HK$400 per spread
1st month vs 2nd month 1st month vs 3rd month 2nd month vs 3rd month 4th month vs 5th month 4th month vs 6th month 5th month vs 6th month	HK$350 per spread	HK$280 per spread

Spread Combination	Initial Margin	Maintenance Margin

Updated 31 Oct 2001