HKFE Announces Revised Margins for Futures Contracts

Market Operations

26 Nov 2008

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

HKFE Announces Revised Margins for Futures Contracts

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, 1 December 2008, 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).

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

Hang Seng Index	Full Rate	161,650		/lot	129,320	/lot
Hang Seng Index	Spread Rate	7,500		/spread	6,000	/spread

Mini-Hang Seng Index	Full Rate	32,330		/lot	25,864	/lot
Mini-Hang Seng Index	Spread Rate	1,500		/spread	1,200	/spread

FTSE/Xinhua China 25 Index	Full Rate	152,550		/lot	122,040	/lot
FTSE/Xinhua China 25 Index	Spread Rate	45,770		/spread	36,616	/spread

H-Financials Index	Full Rate	126,800		/lot	101,440	/lot
H-Financials Index	Spread Rate	38,040		/spread	30,432	/spread

H-shares Index	Full Rate	98,700		/lot	78,960	/lot
H-shares Index	Spread Rate	29,650		/spread	23,720	/spread

Mini H-shares Index	Full Rate	19,740		/lot	15,792	/lot
Mini H-shares Index	Spread Rate	5,930		/spread	4,744	/spread

Three-Year EFN	Full Rate	13,945		/lot	11,156	/lot
Three-Year EFN	Spread Rate	4,184		/spread	3,347	/spread

One-Month HIBOR	Full Rate		20,881	/lot	16,705		/lot
One-Month HIBOR	Spread Rate		Please refer to attached table

Three-Month HIBOR	Full Rate		9,866	/lot	7,893		/lot
Three-Month HIBOR	Spread Rate		Please refer to attached table

Aluminum Corporation of China Ltd	Full Rate		2,701	/lot	2,161		/lot
Aluminum Corporation of China Ltd	Spread Rate		810	/spread	648		/spread

Bank of China Ltd	Full Rate		659	/lot	527		/lot
Bank of China Ltd	Spread Rate		198	/spread	158		/spread

Bank of Communications Co Ltd	Full Rate		1,436	/lot	1,149		/lot
Bank of Communications Co Ltd	Spread Rate		431	/spread	345		/spread

The Bank of East Asia Ltd	Full Rate		949	/lot	759		/lot
The Bank of East Asia Ltd	Spread Rate		285	/spread	228		/spread

BOC Hong Kong (Holdings) Ltd	Full Rate		1,339	/lot	1,071		/lot
BOC Hong Kong (Holdings) Ltd	Spread Rate		402	/spread	321		/spread

China Construction Bank Corporation	Full Rate		1,103	/lot	882		/lot
China Construction Bank Corporation	Spread Rate		331	/spread	265		/spread

China Communications Construction Co Ltd	Full Rate		2,382	/lot	1,906		/lot
China Communications Construction Co Ltd	Spread Rate		715	/spread	572		/spread

China Mobile Ltd	Full Rate		7,641	/lot	6,112		/lot
China Mobile Ltd	Spread Rate		2,292	/spread	1,834		/spread

China Unicom Ltd (CHU: Multiplier = 2,000)	Full Rate		5,686	/lot	4,549		/lot
China Unicom Ltd (CHU: Multiplier = 2,000)	Spread Rate		1,706	/spread	1,365		/spread

China Unicom Ltd (CHA: Multiplier = 754)	Full Rate		2,144	/lot	1,715		/lot
China Unicom Ltd (CHA: Multiplier = 754)	Spread Rate		643	/spread	515		/spread

CITIC Pacific Ltd	Full Rate		6,828	/lot	5,462		/lot
CITIC Pacific Ltd	Spread Rate		2,048	/spread	1,639		/spread

Cheung Kong (Holdings) Ltd	Full Rate		16,954	/lot	13,563		/lot
Cheung Kong (Holdings) Ltd	Spread Rate		5,086	/spread	4,069		/spread

Cheung Kong Infrastructure Holdings Ltd	Full Rate		4,701	/lot	3,761		/lot
Cheung Kong Infrastructure Holdings Ltd	Spread Rate		1,410	/spread	1,128		/spread

China Life Insurance Company Ltd	Full Rate		6,628	/lot	5,302		/lot
China Life Insurance Company Ltd	Spread Rate		1,988	/spread	1,591		/spread

CLP Holdings Ltd	Full Rate		5,237	/lot	4,190		/lot
CLP Holdings Ltd	Spread Rate		1,571	/spread	1,257		/spread

China Merchants Bank Co Ltd	Full Rate		2,540	/lot	2,032		/lot
China Merchants Bank Co Ltd	Spread Rate		762	/spread	610		/spread

CNOOC Ltd	Full Rate		2,190	/lot	1,752		/lot
CNOOC Ltd	Spread Rate		657	/spread	526		/spread

Cathay Pacific Airways Ltd	Full Rate		2,760	/lot	2,208		/lot
Cathay Pacific Airways Ltd	Spread Rate		828	/spread	662		/spread

China Petroleum & Chemical Corporation	Full Rate		3,114	/lot	2,491		/lot
China Petroleum & Chemical Corporation	Spread Rate		934	/spread	747		/spread

China Telecom Corporation Ltd	Full Rate		1,647	/lot	1,318		/lot
China Telecom Corporation Ltd	Spread Rate		494	/spread	395		/spread

Denway Motors Ltd	Full Rate		1,030	/lot	824		/lot
Denway Motors Ltd	Spread Rate		309	/spread	247		/spread

Esprit Holdings Ltd (ESP: Multiplier =100)	Full Rate		1,179	/lot	944		/lot
Esprit Holdings Ltd (ESP: Multiplier =100)	Spread Rate		354	/spread	283		/spread

Esprit Holdings Ltd (ESA: Multiplier =106)	Full Rate		1,246	/lot	997		/lot
Esprit Holdings Ltd (ESA: Multiplier =106)	Spread Rate		374	/spread	299		/spread

Foxconn International Holdings Ltd	Full Rate		1,270	/lot	1,016		/lot
Foxconn International Holdings Ltd	Spread Rate		381	/spread	305		/spread

Hongkong Electric Holdings Ltd	Full Rate		3,464	/lot	2,771		/lot
Hongkong Electric Holdings Ltd	Spread Rate		1,039	/spread	831		/spread

Hong Kong Exchanges and Clearing Ltd (HEX: Multiplier = 100)	Full Rate		1,892	/lot	1,514		/lot
	Spread Rate		568	/spread	454		/spread

Hong Kong Exchanges and Clearing Ltd (HEA: Multiplier = 500)	Full Rate		9,460	/lot	7,570		/lot
	Spread Rate		2,840	/spread	2,270		/spread

HSBC Holdings Plc	Full Rate		6,524	/lot	5,219		/lot
HSBC Holdings Plc	Spread Rate		1,957	/spread	1,566		/spread

Hong Kong and China Gas Co Ltd (HKG: Multiplier = 1,000)	Full Rate		3,018	/lot	2,415		/lot
Hong Kong and China Gas Co Ltd (HKG: Multiplier = 1,000)	Spread Rate		905	/spread	725		/spread

Hong Kong and China Gas Co Ltd (HKA: Multiplier = 1,100)	Full Rate		3,320	/lot	2,657		/lot
Hong Kong and China Gas Co Ltd (HKA: Multiplier = 1,100)	Spread Rate		996	/spread	798		/spread

Henderson Land Development Co Ltd	Full Rate		7,096	/lot	5,677		/lot
Henderson Land Development Co Ltd	Spread Rate		2,129	/spread	1,703		/spread

Huaneng Power International Inc	Full Rate		2,281	/lot	1,825		/lot
Huaneng Power International Inc	Spread Rate		684	/spread	548		/spread

Hang Seng Bank Ltd	Full Rate		2,220	/lot	1,776		/lot
Hang Seng Bank Ltd	Spread Rate		666	/spread	533		/spread

Hutchison Whampoa Ltd	Full Rate		10,722	/lot	8,577		/lot
Hutchison Whampoa Ltd	Spread Rate		3,217	/spread	2,573		/spread

Industrial and Commercial Bank of China Ltd	Full Rate		1,097	/lot	878		/lot
Industrial and Commercial Bank of China Ltd	Spread Rate		329	/spread	263		/spread

Johnson Electric Holdings Ltd	Full Rate		234	/lot	187		/lot
Johnson Electric Holdings Ltd	Spread Rate		70	/spread	56		/spread

Li & Fung Ltd	Full Rate		10,187	/lot	8,149		/lot
Li & Fung Ltd	Spread Rate		3,056	/spread	2,445		/spread

MTR Corporation Ltd	Full Rate		1,637	/lot	1,309		/lot
MTR Corporation Ltd	Spread Rate		491	/spread	393		/spread

New World Development Co Ltd	Full Rate		1,766	/lot	1,413		/lot
New World Development Co Ltd	Spread Rate		530	/spread	424		/spread

Ping An Insurance (Group) Co of China Ltd	Full Rate		6,136	/lot	4,909		/lot
Ping An Insurance (Group) Co of China Ltd	Spread Rate		1,841	/spread	1,473		/spread

PCCW Ltd	Full Rate		880	/lot	704		/lot
PCCW Ltd	Spread Rate		264	/spread	211		/spread

PetroChina Company Ltd	Full Rate		3,658	/lot	2,926		/lot
PetroChina Company Ltd	Spread Rate		1,097	/spread	878		/spread

PICC Property and Casualty Co Ltd	Full Rate		1,603	/lot	1,282		/lot
PICC Property and Casualty Co Ltd	Spread Rate		481	/spread	385		/spread

Sun Hung Kai Properties Ltd	Full Rate		15,383	/lot	12,306		/lot
Sun Hung Kai Properties Ltd	Spread Rate		4,615	/spread	3,692		/spread

Swire Pacific Ltd “A”	Full Rate		6,334	/lot	5,067		/lot
Swire Pacific Ltd “A”	Spread Rate		1,900	/spread	1,520		/spread

The Wharf (Holdings) Ltd	Full Rate		4,323	/lot	3,458		/lot
The Wharf (Holdings) Ltd	Spread Rate		1,297	/spread	1,037		/spread

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

Gold Futures	Full Rate	9,511	/lot	7,609	/lot
Gold Futures	Spread Rate	2,853	/spread	2,283	/spread

HKFE emphasises 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 (HK$)	Maintenance Margin (HK$)
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	12,049 per spread	9,639 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	10,448 per spread	8,358 per spread
1st month vs 2nd month 1st month vs 3rd month 2nd month vs 3rd month	8,750 per spread	7,000 per spread
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	7,728 per spread	6,182 per spread
4th month vs 5th month 4th month vs 6th month 5th month vs 6th month	4,456 per spread	3,565 per spread
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	1,875 per spread	1,500 per spread

Spread Margin Rates
for One-Month HIBOR Futures

Spread Combination	Initial Margin (HK$)	Maintenance Margin (HK$)
1st month vs 4th month 1st month vs 5th month 1st month vs 6th month	8,874 per spread	7,099 per spread
1st month vs 2nd month 1st month vs 3rd month	8,342 per spread	6,674 per spread
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	3,802 per spread	3,042 per spread
2nd month vs 3rd month	2,894 per spread	2,315 per spread
4th month vs 5th month 4th month vs 6th month 5th month vs 6th month	1,735 per spread	1,388 per spread

Updated 26 Nov 2008