Hong Kong Securities Clearing Company Limited

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.

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.

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.

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.

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.

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.

Under SZ-HK Stock Connect, SEHK, a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited , and SZSE will establish mutual order-routing connectivity and related technical infrastructure to enable investors of their respective markets to trade designated equity securities listed in the other’s market. Major securities products include equity securities, depositary receipts, debt securities, unit trusts/mutual funds (i.e. ETFs and REITs) and structured products. Derivative products include index and stock futures and options, interest rate and fixed income products and gold futures. OTC Clear started offering OTC derivatives clearing services in November 2013.