HKFE Announces Revised Margins for Futures Contracts

Market Operations

28 Dec 2001

Hong Kong Futures Exchange (HKFE), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), announced today (Friday) that with effect from the commencement of trading on Wednesday, 2 January 2002, 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$)	Maintenance Margin (HK$)
Hang Seng Index	Full Rate Spread Rate	44,250 (48,000) per lot 3,750 (3,750)/lot/side	35,400 (38,400) per lot 3,000 (3,000)/lot/side
Mini-Hang Seng Index	Full Rate Spread Rate	8,850 (9,600) per lot 750 (750)/lot/side	7,080 (7,680) per lot 600 (600)/lot/side
MSCI China Free Index	Full Rate Spread Rate	16,300 (19,000) per lot 2,445 (2,850)/lot/side	13,040 (15,200) per lot 1,956 (2,280)/lot/side
Three-Month HIBOR	Full Rate Spread Rate	1,200 (1,125) per lot	960 (900) per lot
Three-Month HIBOR	Full Rate Spread Rate	Please refer to the attached table
One-Month HIBOR	Full Rate Spread Rate	650 (925) per lot	520 (740) per lot
One-Month HIBOR	Full Rate Spread Rate	Please refer to the attached table
Three-Year EFN	Full Rate Spread Rate	17,600 (14,500) per lot 2,640 (2,200)/lot/side	14,080 (11,600)per lot 2,112 (1,760)/lot/side
HSBC Holdings Plc	Full Rate Spread Rate	2,720 (3,320) per lot 410 (500)/lot/side	2,176 (2,656) per lot 328 (400)/lot/side
Pacific Century CyberWorks Ltd	Full Rate Spread Rate	260 (270) per lot 40 (40)/lot/side	208 (216) per lot 32 (32)/lot/side
Cheung Kong (Holdings) Ltd	Full Rate Spread Rate	7,900 (7,700) per lot1,185 (1,155)/lot/side	6,320 (6,160) per lot 948 (924)/lot/side
Swire Pacific Ltd 'A' Shares	Full Rate Spread Rate	2,100 (2,275) per lot 315 (345)/lot/side	1,680 (1,820) per lot 252 (276)/lot/side
CITIC Pacific Ltd	Full Rate Spread Rate	1,770 (2,150) per lot 270 (325) /lot/side	1,416 (1,720) per lot 216 (260) /lot/side
China Resources Enterprise Ltd	Full Rate Spread Rate	2,300 (2,580) per lot 345 (390)/lot/side	1,840 (2,064) per lot 276 (312)/lot/side
Shanghai Industrial Holdings Ltd	Full Rate Spread Rate	930 (1,120) per lot 140 (170)/lot/side	744 (896) per lot 112 (136)/lot/side
Hongkong Electric Holdings Ltd	Full Rate Spread Rate	900 (975) per lot 135 (150)/lot/side	720 (780) per lot 108 (120)/lot/side
Hang Seng Bank Ltd	Full Rate Spread Rate	570 (580) per lot 90 (90) /lot/side	456 (464) per lot 72 (72) /lot/side
Henderson Land Development Company Ltd	Full Rate Spread Rate	4,100 (3,480) per lot 615 (525)/lot/side	3,280 (2,784) per lot 492 (420)/lot/side
Hutchison Whampoa Ltd	Full Rate Spread Rate	7,700 (8,250) per lot 1,155 (1,240)/lot/side	6,160 (6,600) per lot 924 (992)/lot/side
Sun Hung Kai Properties Ltd	Full Rate Spread Rate	7,300 (6,600) per lot 1,095 (990)/lot/side	5,840 (5,280) per lot 876 (792)/lot/side
China Light and Power Company Ltd	Full Rate Spread Rate	940 (940) per lot 145 (145)/lot/side	752 (752) per lot 116 (116)/lot/side
The Wharf (Holdings) Ltd	Full Rate Spread Rate	1,940 (1,720) per lot 295 (260)/lot/side	1,552 (1,376) per lot 236 (208)/lot/side
New World Development Company Ltd	Full Rate Spread Rate	1,170 (920) per lot 180/ (140)lot/side	936 (736) per lot 144 (112)/lot/side
Legend Holdings Ltd	Full Rate Spread Rate	1,160 (1,340) per lot 175 (200)/lot/side	928 (1,072) per lot 140 (160)/lot/side
China Mobile (HK) Ltd	Full Rate Spread Rate	1,840 (2,125) per lot 280 (320)/lot/side	1,472 (1,700) per lot 224 (256)/lot/side
The Bank of East Asia Ltd	Full Rate Spread Rate	214 (246) per lot 35 (40)/lot/side	171.2 (196.8) per lot 28 (32)/lot/side
Hong Kong and China Gas Company Ltd	Full Rate Spread Rate	620 (620) per lot 95 (95)/lot/side	496 (496) per lot 76 (76)/lot/side
MTR Corporation Ltd	Full Rate Spread Rate	420 (540) per lot 65 (80)/lot/side	336 (432) per lot 52 (64)/lot/side
China Merchants Holdings (International) Company Ltd	Full Rate Spread Rate	960 (1,000) per lot 145 (150)/lot/side	768 (800) per lot 116 (120)/lot/side
Johnson Electric Holdings Ltd	Full Rate Spread Rate	700 (780) per lot 105 (120)/lot/side	560 (624) per lot 84 (96)/lot/side
Cathay Pacific Airways Ltd	Full Rate Spread Rate	1,320 (1,320) per lot 200 (200)/lot/side	1,056 (1,056) per lot 160 (160)/lot/side
Hong Kong Exchanges and Clearing Ltd	Full Rate Spread Rate	2,680 (3,000) per lot 405 (450)/lot/side	2,144 (2,400) per lot 324 (360)/lot/side
Li & Fung Ltd	Full Rate Spread Rate	2,580 (2,900) per lot 390 (435)/lot/side	2,064 (2,320) per lot 312 (348)/lot/side
China Unicom Ltd	Full Rate Spread Rate	2,200 (2,740) per lot 330 (415)/lot/side	1,760 (2,192) per lot 264 (332)/lot/side
PetroChina Company Ltd	Full Rate Spread Rate	240 (300) per lot 40 (45)/lot/side	192 (240) per lot 32 (36)/lot/side
Cheung Kong Infrastructure Holdings Ltd	Full Rate Spread Rate	770 (800) per lot 120 (120)/lot/side	616 (640) per lot 96 (96)/lot/side
Cosco Pacific Ltd	Full Rate Spread Rate	760 (920) per lot 115 (140)/lot/side	608 (736) per lot 92 (112)/lot/side

Currency Futures Contracts

		Initial (US$)	Maintenance (US$)
Rolling Forex Japanese Yen	Full Rate	1,875 (1,875) per lot	1,500 (1,500) per lot
Rolling Forex British Pound	Full Rate	2,750 (2,750) per lot	2,200 (2,200) per lot
Rolling Forex Euro	Full Rate	1,750 (1,750) per lot	1,400 (1,400) per lot

US Stock Futures Contracts

	Margin Rate	Initial Margin (US$)	Maintenance Margin (US$)
Cisco Systems Incorporated	Full Rate Spread Rate	283 (285) per lot 45 (45)/lot/side	226.4 (228) per lot 36/ (36)lot/side
IBM Corporation	Full Rate Spread Rate	800 (740) per lot 152.5 (152.5)/lot/side	640 (592) per lot 122 (122)/lot/side
Intel Corporation	Full Rate Spread Rate	385 (420) per lot 60 (65)/lot/side	308 (336) per lot 48 (52)/lot/side
Microsoft Corporation	Full Rate Spread Rate	580 (655) per lot 90 (100)/lot/side	464 (524) per lot 72 (80)/lot/side
Oracle Corporation	Full Rate Spread Rate	210 (215) per lot 35 (35)/lot/side	168 (172) per lot 28 (28)/lot/side

Japan Stock Futures Contracts

	Margin Rate	Initial Margin (JPY)	Maintenance Margin (JPY)
NTT DoCoMo Incorporated	Full Rate Spread Rate	242,100 (257,000) per lot 36,315 (38,550)/lot/side	193,680 (205,600) per lot 29,052 (30,840)/lot/side
Sony Corporation	Full Rate Spread Rate	74,280 (85,900)/per lot 11,145 (12,885)/lot/side	59,424 (68,720) per lot 8,916 (10,308)/lot/side
Nippon Telegraph & Telephone Corporation	Full Rate Spread Rate	68,300 (71,000) per lot 12,500 (12,500)/lot/side	54,640 (56,800) per lot 10,000 (10,000)/lot/side
Fujitsu Ltd	Full Rate Spread Rate	129,900 (145,000) per lot 19,485 (21,750)/lot/side	103,920 (116,000) per lot 15,588 (17,400)/lot/side
Toyota Motor Corporation	Full Rate Spread Rate	31,500 (37,000) per lot 5,750 (5,750)/lot/side	25,200 (29,600) per lot 4,600 (4,600)/lot/side

Korea Stock Futures Contracts

	Margin Rate	Initial Margin (KRW)	Maintenance Margin (KRW)
Korea Electric Power Corporation	Full Rate Spread Rate	26,180 (27,500) per lot 3,930 (4,125)/lot/side	20,944 (22,000) per lot 3,144 (3,300)/lot/side
Korea Telecom Corporation	Full Rate Spread Rate	58,610 (57,000) per lot 8,795 (8,550)/lot/side	46,888 (45,600) per lot 7,036 (6,840)/lot/side
Samsung Electronics Co Ltd	Full Rate Spread Rate	448,000 (310,000) per lot 67,200 (46,500)/lot/side	358,400 (248,000) per lot 53,760 (37,200)/lot/side
SK Telecom Company Ltd	Full Rate Spread Rate	408,000 (380,000) per lot 61,200 (57,000)/lot/side	326,400 (304,000) per lot 48,960 (45,600)/lot/side
Kookmin Bank	Full Rate Spread Rate	135,560 (188,000) per lot 20,335 (28,200)/lot/side	108,448 (150,400) per lot 16,268 (22,560)/lot/side

Taiwan Stock Futures Contracts

	Margin Rate	Initial Margin (NT$)	Maintenance Margin (NT$)
Mosel Vitelic Incorporated	Full Rate Spread Rate	2,300 (1,350) per lot 345 (205)/lot/side	1,840 (1,080) per lot 276 (164)/lot/side
Ritek Corporation	Full Rate Spread Rate	6,200 (5,350) per lot 930 (805)/lot/side	4,960 (4,280) per lot 744 (644)/lot/side
Taiwan Semiconductor Manufacturing Co Ltd	Full Rate Spread Rate	11,980 (10,550) per lot 1,880 (1,585)/lot/side	9,584 (8,400) per lot 1,504 (1,268)/lot/side
United Microelectronics Corporation	Full Rate Spread Rate	7,800 (5,650) per lot 1,170 (850)/lot/side	6,240 (4,520) per lot 936 (680)/lot/side
Winbond Electronics Corporation	Full Rate Spread Rate	3,550 (2,650) per lot 535 (400)/lot/side	2,840 (2,120) per lot 428 (320)/lot/side

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 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 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

Updated 28 Dec 2001