HKFE Announces Revised Margins for Futures Contracts

Market Operations

26 Nov 2010

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 Wednesday, 1 December 2010, 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.

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

Hang Seng Index	Full Rate	74,000	/lot	59,200	/lot
Hang Seng Index	Spread Rate	7,500	/spread	6,000	/spread

Mini-Hang Seng Index	Full Rate	14,800	/lot	11,840	/lot
Mini-Hang Seng Index	Spread Rate	1,500	/spread	1,200	/spread

H-shares Index	Full Rate	48,950	/lot	39,150	/lot
H-shares Index	Spread Rate	14,700	/spread	11,750	/spread

Mini H-shares Index	Full Rate	9,790	/lot	7,830	/lot
Mini H-shares Index	Spread Rate	2,940	/spread	2,350	/spread

HSI Dividend Point Index	Full Rate	3,370	/lot	2,700	/lot
HSI Dividend Point Index	Spread Rate	4,050	/spread	3,240	/spread

HSCEI Dividend Point Index	Full Rate	1,450	/lot	1,160	/lot
HSCEI Dividend Point Index	Spread Rate	1,740	/spread	1,400	/spread

Three-Year EFN	Full Rate	10,810	/lot	8,650	/lot
	Spread Rate	3,250	/spread	2,600	/spread

One-Month HIBOR	Full Rate	703	/lot	562	/lot
One-Month HIBOR	Spread Rate	Please refer to attached table

Three-Month HIBOR	Full Rate	623	/lot	498	/lot
Three-Month HIBOR	Spread Rate	Please refer to attached table

Aluminum Corporation of China Ltd	Full Rate	1,410	/lot	1,130	/lot
Aluminum Corporation of China Ltd	Spread Rate	423	/spread	339	/spread

Bank of China Limited (BCL: Multiplier = 1,000)	Full Rate	327	/lot	261	/lot
Bank of China Limited (BCL: Multiplier = 1,000)	Spread Rate	99	/spread	79	/spread

Bank of China Limited (BCB: Multiplier = 1,043)	Full Rate	341	/lot	272	/lot
Bank of China Limited (BCB: Multiplier = 1,043)	Spread Rate	103	/spread	82	/spread

Bank of Communications Co Ltd (BCM-Multiplier = 1,000)	Full Rate	742	/lot	594	/lot
Bank of Communications Co Ltd (BCM-Multiplier = 1,000)	Spread Rate	223	/spread	179	/spread

Bank of Communications Co Ltd (BCA-Multiplier = 1,054)	Full Rate	782	/lot	626	/lot
Bank of Communications Co Ltd (BCA-Multiplier = 1,054)	Spread Rate	235	/spread	189	/spread

The Bank of East Asia Ltd	Full Rate	431	/lot	345	/lot
The Bank of East Asia Ltd	Spread Rate	130	/spread	104	/spread

BOC Hong Kong (Holdings) Ltd	Full Rate	1,130	/lot	903	/lot
BOC Hong Kong (Holdings) Ltd	Spread Rate	339	/spread	271	/spread

China Construction Bank Corporation (CCB: Multiplier = 1,000)	Full Rate	584	/lot	467	/lot
	Spread Rate	176	/spread	141	/spread

China Construction Bank Corporation (CCA: Multiplier = 1,031)	Full Rate	602	/lot	481	/lot
	Spread Rate	181	/spread	145	/spread

China Communications Construction Co Ltd	Full Rate	481	/lot	385	/lot
China Communications Construction Co Ltd	Spread Rate	145	/spread	116	/spread

China Mobile Ltd	Full Rate	2,470	/lot	1,980	/lot
China Mobile Ltd	Spread Rate	741	/spread	594	/spread

China Unicom (Hong Kong) Ltd	Full Rate	1,790	/lot	1,430	/lot
China Unicom (Hong Kong) Ltd	Spread Rate	537	/spread	429	/spread

CITIC Pacific Ltd	Full Rate	2,090	/lot	1,670	/lot
CITIC Pacific Ltd	Spread Rate	627	/spread	501	/spread

Cheung Kong (Holdings) Ltd	Full Rate	9,560	/lot	7,650	/lot
Cheung Kong (Holdings) Ltd	Spread Rate	2,870	/spread	2,300	/spread

China Life Insurance Company Ltd	Full Rate	2,810	/lot	2,250	/lot
China Life Insurance Company Ltd	Spread Rate	843	/spread	675	/spread

CLP Holdings Ltd	Full Rate	2,030	/lot	1,620	/lot
CLP Holdings Ltd	Spread Rate	609	/spread	486	/spread

China Merchants Bank Co Ltd	Full Rate	894	/lot	715	/lot
China Merchants Bank Co Ltd	Spread Rate	269	/spread	215	/spread

CNOOC Ltd	Full Rate	1,660	/lot	1,330	/lot
CNOOC Ltd	Spread Rate	498	/spread	399	/spread

Cathay Pacific Airways Ltd	Full Rate	1,590	/lot	1,270	/lot
Cathay Pacific Airways Ltd	Spread Rate	477	/spread	381	/spread

China Petroleum & Chemical Corporation	Full Rate	1,220	/lot	974	/lot
China Petroleum & Chemical Corporation	Spread Rate	366	/spread	293	/spread

China Telecom Corporation Ltd	Full Rate	528	/lot	423	/lot
China Telecom Corporation Ltd	Spread Rate	159	/spread	127	/spread

Esprit Holdings Ltd	Full Rate	275	/lot	220	/lot
Esprit Holdings Ltd	Spread Rate	83	/spread	66	/spread

Foxconn International Holdings Ltd	Full Rate	488	/lot	391	/lot
Foxconn International Holdings Ltd	Spread Rate	147	/spread	118	/spread

Hongkong Electric Holdings Ltd	Full Rate	1,590	/lot	1,270	/lot
Hongkong Electric Holdings Ltd	Spread Rate	477	/spread	381	/spread

Hong Kong Exchanges and Clearing Ltd	Full Rate	1,740	/lot	1,400	/lot
Hong Kong Exchanges and Clearing Ltd	Spread Rate	522	/spread	420	/spread

HSBC Holdings Plc	Full Rate	2,080	/lot	1,670	/lot
HSBC Holdings Plc	Spread Rate	624	/spread	501	/spread

Hong Kong and China Gas Co Ltd (HKG-Multiplier =1,000)	Full Rate	1,220	/lot	976	/lot
Hong Kong and China Gas Co Ltd (HKG-Multiplier =1,000)	Spread Rate	366	/spread	293	/spread

Hong Kong and China Gas Co Ltd (HKA-Multiplier =1,100)	Full Rate	1,342	/lot	1,074	/lot
Hong Kong and China Gas Co Ltd (HKA-Multiplier =1,100)	Spread Rate	403	/spread	322	/spread

Henderson Land Development Co Ltd (HLD-Multiplier=1,000)	Full Rate	3,470	/lot	2,780	/lot
Henderson Land Development Co Ltd (HLD-Multiplier=1,000)	Spread Rate	1,050	/spread	834	/spread

Henderson Land Development Co Ltd (HLA-Multiplier= 1,021)	Full Rate	3,543	/lot	2,838	/lot
Henderson Land Development Co Ltd (HLA-Multiplier= 1,021)	Spread Rate	1,072	/spread	851	/spread

Huaneng Power International Inc	Full Rate	537	/lot	429	/lot
Huaneng Power International Inc	Spread Rate	162	/spread	129	/spread

Hang Seng Bank Ltd	Full Rate	792	/lot	634	/lot
Hang Seng Bank Ltd	Spread Rate	238	/spread	191	/spread

Hutchison Whampoa Ltd	Full Rate	7,340	/lot	5,880	/lot
Hutchison Whampoa Ltd	Spread Rate	2,210	/spread	1,770	/spread

Industrial and Commercial Bank of China Ltd (ICB: Multiplier = 1,000)	Full Rate	518	/lot	414	/lot
	Spread Rate	156	/spread	125	/spread

Industrial and Commercial Bank of China Ltd (ICA: Multiplier = 1,019)	Full Rate	528	/lot	422	/lot
	Spread Rate	159	/spread	127	/spread

Li & Fung Ltd	Full Rate	6,310	/lot	5,050	/lot
Li & Fung Ltd	Spread Rate	1,900	/spread	1,520	/spread

MTR Corporation Ltd	Full Rate	915	/lot	732	/lot
MTR Corporation Ltd	Spread Rate	275	/spread	220	/spread

New World Development Co Ltd	Full Rate	1,670	/lot	1,340	/lot
New World Development Co Ltd	Spread Rate	501	/spread	402	/spread

Ping An Insurance (Group) Co of China Ltd	Full Rate	4,720	/lot	3,780	/lot
Ping An Insurance (Group) Co of China Ltd	Spread Rate	1,420	/spread	1,140	/spread

PetroChina Company Ltd	Full Rate	1,590	/lot	1,270	/lot
PetroChina Company Ltd	Spread Rate	477	/spread	381	/spread

PICC Property and Casualty Co Ltd	Full Rate	2,740	/lot	2,190	/lot
PICC Property and Casualty Co Ltd	Spread Rate	822	/spread	657	/spread

Sun Hung Kai Properties Ltd	Full Rate	10,760	/lot	8,610	/lot
Sun Hung Kai Properties Ltd	Spread Rate	3,230	/spread	2,590	/spread

Swire Pacific Ltd “A” (Trading Symbol: SWA & SWB)	Full Rate	4,270	/lot	3,420	/lot
Swire Pacific Ltd “A” (Trading Symbol: SWA & SWB)	Spread Rate	1,290	/spread	1,030	/spread

Wharf (Holdings) Ltd	Full Rate	4,470	/lot	3,580	/lot
Wharf (Holdings) Ltd	Spread Rate	1,350	/spread	1,080	/spread

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

Gold Futures	Full Rate	6,780	/lot	5,430	/lot
Gold Futures	Spread Rate	2,040	/spread	1,630	/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	1,240 per spread	992 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	1,240 per spread	992 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	1,240 per spread	992 per spread
4th month vs 5th month 4th month vs 6th month 5th month vs 6th month	1,010 per spread	806 per spread
1st month vs 2nd month 1st month vs 3rd month 2nd month vs 3rd month	939 per spread	751 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	187 per spread	150 per spread

Spread Margin Rates
for One-Month HIBOR Futures

Spread Combination	Initial Margin (HK$)	Maintenance Margin (HK$)
1st month vs 2nd month 1st month vs 3rd month	536 per spread	429 per spread
1st month vs 4th month 1st month vs 5th month 1st month vs 6th month	530 per spread	424 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	487 per spread	389 per spread
2nd month vs 3rd month	336 per spread	269 per spread
4th month vs 5th month 4th month vs 6th month 5th month vs 6th month	211 per spread	169 per spread

Ends

Updated 26 Nov 2010