Criteria
(Please also see Chapters 3 & 4 of the Rules of The SEHK Options Clearing House Limited ("SEOCH"))
SEOCH has two different categories of Clearing Participantship, each of which has different requirements :-
| Direct Clearing - A participant which can register and clear its own and clients accounts. |
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be an Options Trading Exchange Participant of SEHK. |
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have in place procedures and a back office computer system appropriate to the type of SEOCH Participant applied for. |
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have a liquid capital of not less than the higher of :- |
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(a) |
its required liquid capital under the Financial Resources Rules; or |
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(b) |
HK$5,000,000*.
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contribute HK$1,500,000 to the Reserve Fund referred to in Chapter 3 of the SEOCH Rules. |
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| General Clearing - A participant which can register and clear its own account, its clients' accounts and other Options Trading Exchange Participants' own and clients' accounts. |
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must be an Options Trading Exchange Participant of SEHK. |
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have in place procedures and a back office computer system appropriate to the type of SEOCH Participant applied for. |
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have a liquid capital of not less than the higher of :- |
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(a) |
its required liquid capital under the Financial Resources Rules; or |
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(b) |
HK$100,000,000 provided that if it has entered into valid clearing agreements with no more than five NCPs, an additional HK$20,000,000 for each NCP after the fifth NCP with which it has entered into a valid clearing agreement, subject to a maximum of HK$390,000,000.
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contribute HK$5,000,000 to the Reserve Fund, with an additional HK$1,500,000 in respect of each Clearing Agreement entered into with Options Trading Exchange Participants from the fourth agreement onwards referred to in Chapters 3 and 4 of the SEOCH Rules. |
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(*Note: SEOCH imposes additional financial/capital requirement on new clearing participantship applications from time to time. Before submitting your firm's application to SEOCH/applying for relevant licence(s) from regulator, your firm is strongly advised to contact DCASS hotline (2979 7222) to understand the latest financial requirement.)
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