HKFE Clearing Corporation Limited (HKCC) and the SEHK Options Clearing House Limited (SEOCH), as recognised clearing house (RCHs), have implemented a comprehensive risk management framework which is designed to ensure the timely settlement of relevant derivatives contracts, and stock options transactions by adequately controlling credit, market and liquidity risks.   HKCC and SEOCH also have appropriate policies, procedures and controls in place to manage the additional risks that its services are exposed to, including legal risk, settlement risk, general business risk, custody and investment risks, and operational risk.

The Securities and Futures Commission of Hong Kong (SFC) requires RCH to observe and apply the Principles for Financial Market Infrastructures (PFMI) published by the Committee on Payment and Settlement Systems (CPSS)[1] and the International Organization of Securities Commissions (IOSCO) in April 2012.  In addition, RCH are expected to meet the public quantitative disclosure standards which complement the disclosure framework and also form the minimum disclosures of central counterparties under Principle 23 of the PFMI.

HKCC and SEOCH’s approaches to observing each applicable principle in the PFMI are summarised in their disclosure documents, in accordance with the guidelines set forth in the ‘Disclosure framework and Assessment methodology’ published by CPSS-IOSCO in December 2012.

HKCC PFMI Disclosure

SEOCH PFMI Disclosure

HKCC and SEOCH’s disclosure of their quantitative data are summarised in accordance with the guidelines set forth in the “Public quantitative disclosure standards for central counterparties” published by CPMI-IOSCO in February 2015 and the format set out by the Global Association of Central Counterparties (CCP12).

HKCC Public Quantitative Disclosure Standards for Central Counterparties

SEOCH Public Quantitative Disclosure Standards for Central Counterparties

[1] CPSS changed its name to the Committee on Payments and Market Infrastructures (CPMI) on 1 September 2014. Please note that references to reports published before that date use the Committee’s old name.

Updated 30 Sep 2020