Hong Kong Futures Exchange
(A wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited)

HKFE Announces Revised Margins for Existing Futures Contracts and Sets Margins for BCL Futures Contract

Hong Kong Futures Exchange Limited (HKFE), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), has announced that with effect from the commencement of trading on Monday, 3 July 2006, 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.

For the current margins, please refer to the margin information on the HKEx website at the following link (http://www.hkex.com.hk/eng/market/rm/rm_dcrm/riskdata/margin_hkcc/fomargin.htm).

In addition, HKEx has set the minimum margins to be collected by an Exchange Participant from its clients in respect of their dealings in Bank of China Limited (BCL) Futures, which will be introduced on Monday, 3 July 2006 (see below).

Margins for New Product (with effect from commencement of trading on 3 July 2006)

Revised Margins (with effect from commencement of trading on 3 July 2006)

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 Margin Rates
for One-Month HIBOR Futures