Risk Management

Risk management is the primary function of HKCC and SEOCH safeguard system, which provides the highest level of safety and the early detection of unsound financial practices. Its purpose is to protect all HKCC and SEOCH Participants and their customers against the consequences of a default by a participant in the clearing structure. The system is constantly being reviewed and modified to reflect the most advanced risk management techniques.

The major Safeguards include:

  • Clearing Participantship Standard
  • Clearing System
  • Margining System
  • Daily Mark-To-Market
  • Mandatory Intra-day Variation Adjustment and Margin Call
  • Intra-day Margin Call
  • Capital Based Position Limit
  • Additional Margin on Concentrated Positions
  • Holiday Margin Arrangement
  • Reserve Fund
  • Collateral Management
  • Segregation of Customer Monies
  • Participant's Default

Updated 26 Jun 2017