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Margin Parameters and Margin Offset for Mini-Hang Seng Index Options

Market Operations
14 Nov 2002

Hong Kong Futures Exchange Limited (HKFE), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), has announced the margin parameters and margin offset for Mini-Hang Seng Index (Mini-HSI) Options, which will commence trading on 18 November (Monday).

Mini-HSI Options will be margined based on the margin rate for Mini-HSI Futures and will be equal to one-fifth of the margin amount collectable on a HSI Options with identical strike price and expiry contract month. The following table summarizes the existing margin rates for the Mini-HSI Futures:

Existing Margin Rates for MHI Futures

Initial
(HK$)

Maintenance
(HK$)

Full Rates

6,700 per lot

5,360 per lot

Spread Rates

750/lot/side

600/lot/side

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

Margin Offset

HKFE and the Clearing House have decided to allow margin offset of 100% between HSI Futures and Options and Mini-HSI Futures and Options at the ratio of 1:5.


Updated 14 Nov 2002