Clearing Service Securities

The Association was renamed the Hong Kong Stock Exchange in 1914. A warehouse receipt is a document used in the futures markets to guarantee the quantity and quality of a commodity stored in an approved facility. HKEX believes in maintaining open, transparent, and constructive dialogue with the investment community. Within this section, you can find HKEX's latest financial information, strategic plans, presentations, business statistics, regulatory disclosure, shareholder information, and the contact details of our Investor Relations team. Daily netting – the stock positions of a Participant under the Market Contracts on the same day, in the same Eligible Security, are offset against each other to result in one net long or net short stock position with HKSCC in each Eligible Security on each business day.

Investopedia does not include all offers available in the marketplace. For example, let’s assume that in October the current price for wheat is $4.00 per bushel and the futures price is $4.25. A wheat farmer is trying to secure a selling price for their next crop, while Domino's Pizza is trying to secure a buying price in order to determine how much to charge for a large pizza next year. The farmer and the corporation can enter into a futures contract requiring the delivery of five million bushels of wheat to Domino's in December at a price of $4.25 per bushel.

Analysts expect the government will continue to increase its stake, as HKEX is being prepared "for future integration and alliance with mainland exchanges". Another analyst was concerned about the independence of "independent chairman" Ronald Arculli, who also sits on the Executive Council. OTC Clearing Hong Kong Limited was incorporated as a subsidiary of HKEX in May clearing company 2012 for the purpose of acting as the clearing house for OTC derivatives in Hong Kong. Subsequently, HKEX, under the founding member programme, invited 12 financial institutions as founding members of OTC Clear, who in total hold 25 per cent of issued share capital in OTC Clear (in the form of non-voting ordinary shares) whilst HKEX holds the remaining 75 per cent.

HKEX has applied the principles of the Corporate Governance Code to its corporate governance structure and practices. We collaborate with a multitude of sectors and stakeholders to enhance the financial ecosystem and facilitate the financial journey of clients of all financial institutions and services. The LRMF defines “Available Liquidity Resources” to include Base Liquidity Resources plus allowable Clearing Fund cash deposited in excess of the Clearing Fund Cash Requirement. Government securities for cash deposits in excess of such Clearing Member's proportionate share of the Clearing Fund Cash Requirement is subject to a two-day notice period. OCC's Board has authorized OCC to seek up to an additional $2.5 billion in external liquidity.

OCC has since secured commitments from multiple pension funds in an aggregate amount of $1 billion. Since setting and securing commitments up to that aggregate commitment limit, OCC has experienced an increase in its stressed liquidity demands. Under OCC's Liquidity Risk Management Framework (“LRMF”), OCC performs daily liquidity stress testing to assess its Base Liquidity Resources and Available Liquidity Resources against OCC's liquidity risk tolerance (“Adequacy Scenarios”). Based in part on the results of this stress testing, OCC has periodically adjusted Clearing Member's Clearing Fund Cash Requirement to ensure that OCC maintains sufficient liquidity resources to cover its liquidity risk exposures at all times. Through this Advance Notice OCC proposes a change to its Non-Bank Liquidity Facility program to give OCC greater capacity to source liquidity from its non-bank liquidity providers as needed.

Shenzhen-Hong Kong Stock Connect is a securities trading and clearing links program developed by The Stock Exchange of Hong Kong Limited, the Shenzhen Stock Exchange, Hong Kong Securities Clearing Company Limited and China Securities Depository and Clearing Corporation Limited. Authorized by parent company CSDC, CSDCHK is planning to provide the following services. Net MtM Losses shall be collected from Members in cash on T+0 settlement basis (by day-end on trade day) through Clearing House or Clearing Company.

A decile score of 1 indicates lower governance risk, while a 10 indicates higher governance risk. Accordingly, the Commission believes that the changes proposed in the Advance Notice are consistent with Rule 17Ad-22 under the Exchange Act. Accordingly, and for the reasons stated above, the Commission believes the changes proposed in the Advance Notice are consistent with Section 805 of the Clearing Supervision Act.

HKEX and its subsidiary companies, HKFE Clearing Corporation Limited and SEHK Options Clearing House Limited, operate rigorous risk management system which enables participants and their clients to meet their investment and hedging needs in a liquid and well-regulated market place. OCC's Board has authorized OCC to seek up to an additional $2.5 billion in external liquidity, including through the Non-Bank Liquidity Facility, which would give OCC access to a total of $5.5 billion in external liquidity. For the additional $2.5 billion, OCC expects that it will source $1.5 billion from bank counterparties and $1 billion under the Non-Bank Liquidity Facility.