Risk Management Arrangements in respect of Individual Client Accounts

The circular refers to HKCC Rule 510(f), which allows HKCC to transfer open contracts of a defaulting participant to another participant, and HKCC Procedure 1.2.3, which allows an HKCC participant to open individual client accounts in DCASS. It states that in the event of an HKCC participant’s default, positions in an individual client account opened for a client can only be transferred to another participant if all of the individual client accounts opened by the defaulting participant for the same client are transferred at the same time, along with all margin, variation adjustments, or non-cash collateral for those accounts.

Resource:

https://www.hkex.com.hk/-/media/HKEX-Market/Services/Circulars-and-Notices/Participant-and-Members-Circulars/HKCC/2023/ce_HKCC_DCRC_181_2023.pdf

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