Hong Kong Exchanges and Clearing (0388) has announced the launch of a VaR platform for post-trade clients, and introduction of portfolio margining in its securities market.
The new platform will introduce margin requirements based on individual stock volatility, instead of the previously applied flat margin rate across all securities, the stock exchange said in a statement yesterday.
Its enhanced margining model strengthens the bourse's resilience and boosts capital efficiency, supporting its clearing participants through margin savings on diversified portfolios, co-chief operating officer John Buckley said in the statement.
The new platform is available to all clearing participants for securities transactions in HKEX's markets, with its new margin and stress testing models for the calculation of margins and the default fund, said the statement.
The launch came as the Hong Kong Monetary Authority vowed to further commercialize the Central Moneymarkets Unit, a system to provide multi-currency settlement, clearing, and custodian services to debt securities.
The HKMA plans to upgrade the system in phases in the coming three years to enhance efficiency and risk management; establish more cross-border linkages with different jurisdictions; and for greater flexibility, chief executive Eddie Yue Wai-man wrote in his blog.
The de facto central bank is also scheduled to launch a new dedicated website of the CMU in the third quarter and launch a new CMU platform in 2025, Yue said.
