Hong Kong Exchanges and Clearing (0388) said it will lower accommodation charges for non-cash margin collateral posted at its clearing houses as part of the enhancements to its margin collateral arrangements to boost market efficiency and lower costs for market participants.
The annual accommodation charge for non-cash collateral will be reduced to 0.25 percent from 0.5 percent, the bourse said in a statement on Monday.
The new arrangements also include changing how HKEX calculates the interest paid on cash margin collateral.
Interest payments and charges will be calculated daily based on an approach that aligns with international peers, paying an overnight reference rate, less a handling fee.
The handling fee will initially start at 0.8 percent between October 2025 and December 2026, and decline 10 basis points each year until reaching 0.5 percent by the end of 2028.
This approach will align across Hong Kong Securities Clearing Company, HKFE Clearing Corporation, and The SEHK Options Clearing House, and across all currencies that are accepted as collateral.
The new interest payment policy and accommodation charges, which have been approved by the Securities and Futures Commission, will take effect from October 2, it said.
These enhancements will better support market participants in executing their trading strategies and managing their investment risks, said HKEX chief operating officer Vanessa Lau Bik-yun.
Taken together with the recent increases to the position limits for stock options and index derivatives, the capacity for cleared positions has materially increased, while the capital efficiency of holding these positions is also being enhanced, Lau added.
