HONG KONG: HKEX Introduces Enhancements to Margin Collateral Arrangements

Tuesday September 2 2025

On 1^st September 2025, the Hong Kong Exchanges and Clearing Limited (HKEX) announced that it will implement enhancements to its margin collateral arrangements at its securities and derivatives clearing houses. The enhancements are part of HKEX’s ongoing commitment to boost market efficiency and lower costs for market participants.

The new arrangements include changing how HKEX calculates the interest paid on cash margin collateral, and lowering accommodation charges for non-cash margin collateral posted at HKEX’s clearing houses.

For cash 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. This approach will align across Hong Kong Securities Clearing Company Limited (HKSCC), HKFE Clearing Corporation Limited (HKCC) and The SEHK Options Clearing House Limited (SEOCH), and across all currencies that are accepted as collateral. The handling fee will initially start at 0.8 per cent between October 2025 and December 2026 and decline 10 basis points each year until reaching 0.5 per cent by the end of 2028.

For non-cash collateral, the annual accommodation charge will be reduced to 0.25 per cent from 0.5 per cent.

The new interest payment policy and accommodation charges, which have been approved by the Securities and Futures Commission (SFC), will take effect from 2 October 2025.

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