HKFE Prepared to Revise Margins for PCCW Futures Contract
Market Operations
06 Jan 2003
Hong Kong Futures Exchange Limited
(A wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited)
HKFE Prepared to Revise Margins for PCCW Futures Contract
Hong Kong Futures Exchange Limited (HKFE), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), is prepared to revise the margin rate for PCCW Futures Contract if shareholders approve the companys proposal to consolidate every five shares of HK$0.05 each with effect from 8 January 2003.
If the proposal is approved at an extraordinary general meeting scheduled for tomorrow (Tuesday, 7 January 2003), the minimum margins to be collected by an Exchange Participant from its clients in respect of their dealings would be adjusted with effect from the commencement of trading on 8 January 2003 as outlined in the table below. The table is based on the clearing company's normal procedures and standard margining methodology.
For the current margins, please refer to HKEx's website (http://www.hkex.com.hk) and see Trading Information - Futures & Options in the Derivatives Market section.
| Futures Contract |
Margin Rate |
Initial Margin
(HK$) |
Maintenance Margin
(HK$) |
| PCCW Limited (PCC with contract multiplier 1,000) |
Full Rate |
1,250 per lot |
1,000 per lot |
|
Spread Rate
|
200 /lot/side |
160 /lot/side |
| PCCW Limited (Temporary contract PCA with contract multiplier 200) |
Full Rate |
250 per lot |
200 per lot |
|
Spread Rate
|
40 /lot/side |
32 /lot/side |
HKFE emphasised that the above would be minimum rates and Exchange Participants would need to set their margin requirements according to their clients' individual circumstances.