HKFE Announces Revised Margins for Futures Contracts

Market Operations

29 Dec 2008

Hong Kong Futures Exchange
(A wholly-owned subsidiary of Hong Kong Global Equity Exchange Centre Limited)

HKFE Announces Revised Margins for Futures Contracts

Hong Kong Futures Exchange Limited (HKFE), a wholly-owned subsidiary of Hong Kong Global Equity Exchange Centre Limited (HKEx), has announced that with effect from the commencement of trading on Friday, 2 January 2009, the minimum margins to be collected by an Exchange Participant from its clients in respect of their dealings in the following futures contracts will be as outlined in the table below. The adjustments are based on the clearing company's normal procedures and standard margining methodology.

For the current margins, please refer to the margin information on the HKEx website at the following link (http://www.hkex.com.hk/eng/market/rm/rm_dcrm/riskdata/margin_hkcc/fomargin.htm).

Futures Contract	Margin Rate	Initial Margin (HK$)			Maintenance Margin (HK$)

Hang Seng Index	Full Rate	131,900		/lot	105,520	/lot
Hang Seng Index	Spread Rate	7,500		/spread	6,000	/spread

Mini-Hang Seng Index	Full Rate	26,380		/lot	21,104	/lot
Mini-Hang Seng Index	Spread Rate	1,500		/spread	1,200	/spread

H-shares Index	Full Rate	85,100		/lot	68,100	/lot
H-shares Index	Spread Rate	25,550		/spread	20,440	/spread

Mini H-shares Index	Full Rate	17,020		/lot	13,620	/lot
Mini H-shares Index	Spread Rate	5,110		/spread	4,088	/spread

Three-Year EFN	Full Rate	10,759		/lot	8,607	/lot
Three-Year EFN	Spread Rate	3,228		/spread	2,582	/spread

One-Month HIBOR	Full Rate		14,223	/lot	11,378		/lot
One-Month HIBOR	Spread Rate		Please refer to attached table

Three-Month HIBOR	Full Rate		8,068	/lot	6,455		/lot
Three-Month HIBOR	Spread Rate		Please refer to attached table

Aluminum Corporation of China Ltd	Full Rate		2,753	/lot	2,203		/lot
Aluminum Corporation of China Ltd	Spread Rate		826	/spread	661		/spread

Bank of China Ltd	Full Rate		514	/lot	411		/lot
Bank of China Ltd	Spread Rate		154	/spread	123		/spread

Bank of Communications Co Ltd	Full Rate		1,270	/lot	1,016		/lot
Bank of Communications Co Ltd	Spread Rate		381	/spread	305		/spread

The Bank of East Asia Ltd	Full Rate		732	/lot	585		/lot
The Bank of East Asia Ltd	Spread Rate		220	/spread	176		/spread

BOC Hong Kong (Holdings) Ltd	Full Rate		1,058	/lot	847		/lot
BOC Hong Kong (Holdings) Ltd	Spread Rate		317	/spread	254		/spread

China Construction Bank Corporation	Full Rate		976	/lot	780		/lot
China Construction Bank Corporation	Spread Rate		293	/spread	234		/spread

China Communications Construction Co Ltd	Full Rate		2,124	/lot	1,699		/lot
China Communications Construction Co Ltd	Spread Rate		637	/spread	510		/spread

China Mobile Ltd	Full Rate		6,649	/lot	5,319		/lot
China Mobile Ltd	Spread Rate		1,995	/spread	1,596		/spread

China Unicom Ltd (CHU: Multiplier = 2,000)	Full Rate		4,489	/lot	3,591		/lot
China Unicom Ltd (CHU: Multiplier = 2,000)	Spread Rate		1,347	/spread	1,077		/spread

China Unicom Ltd (CHA: Multiplier = 754)	Full Rate		1,692	/lot	1,354		/lot
China Unicom Ltd (CHA: Multiplier = 754)	Spread Rate		508	/spread	406		/spread

CITIC Pacific Ltd	Full Rate		4,730	/lot	3,784		/lot
CITIC Pacific Ltd	Spread Rate		1,419	/spread	1,135		/spread

Cheung Kong (Holdings) Ltd	Full Rate		14,156	/lot	11,325		/lot
Cheung Kong (Holdings) Ltd	Spread Rate		4,247	/spread	3,398		/spread

Cheung Kong Infrastructure Holdings Ltd	Full Rate		3,852	/lot	3,082		/lot
Cheung Kong Infrastructure Holdings Ltd	Spread Rate		1,156	/spread	925		/spread

China Life Insurance Company Ltd	Full Rate		5,398	/lot	4,318		/lot
China Life Insurance Company Ltd	Spread Rate		1,619	/spread	1,295		/spread

CLP Holdings Ltd	Full Rate		3,952	/lot	3,161		/lot
CLP Holdings Ltd	Spread Rate		1,186	/spread	948		/spread

China Merchants Bank Co Ltd	Full Rate		2,009	/lot	1,607		/lot
China Merchants Bank Co Ltd	Spread Rate		603	/spread	482		/spread

CNOOC Ltd	Full Rate		1,965	/lot	1,572		/lot
CNOOC Ltd	Spread Rate		590	/spread	472		/spread

Cathay Pacific Airways Ltd	Full Rate		1,997	/lot	1,597		/lot
Cathay Pacific Airways Ltd	Spread Rate		599	/spread	479		/spread

China Petroleum & Chemical Corporation	Full Rate		2,433	/lot	1,947		/lot
China Petroleum & Chemical Corporation	Spread Rate		730	/spread	584		/spread

China Telecom Corporation Ltd	Full Rate		1,350	/lot	1,080		/lot
China Telecom Corporation Ltd	Spread Rate		405	/spread	324		/spread

Denway Motors Ltd	Full Rate		1,199	/lot	959		/lot
Denway Motors Ltd	Spread Rate		360	/spread	288		/spread

Esprit Holdings Ltd (ESP: Multiplier =100)	Full Rate		1,118	/lot	894		/lot
Esprit Holdings Ltd (ESP: Multiplier =100)	Spread Rate		335	/spread	268		/spread

Esprit Holdings Ltd (ESA: Multiplier =106)	Full Rate		1,185	/lot	948		/lot
Esprit Holdings Ltd (ESA: Multiplier =106)	Spread Rate		355	/spread	284		/spread

Foxconn International Holdings Ltd	Full Rate		1,011	/lot	809		/lot
Foxconn International Holdings Ltd	Spread Rate		303	/spread	243		/spread

Hongkong Electric Holdings Ltd	Full Rate		2,744	/lot	2,195		/lot
Hongkong Electric Holdings Ltd	Spread Rate		823	/spread	659		/spread

Hong Kong Global Equity Exchange Centre Ltd	Full Rate		1,811	/lot	1,449		/lot
Hong Kong Global Equity Exchange Centre Ltd	Spread Rate		543	/spread	435		/spread

HSBC Holdings Plc	Full Rate		5,268	/lot	4,214		/lot
HSBC Holdings Plc	Spread Rate		1,580	/spread	1,264		/spread

Hong Kong and China Gas Co Ltd	Full Rate		2,325	/lot	1,860		/lot
Hong Kong and China Gas Co Ltd	Spread Rate		698	/spread	558		/spread

Henderson Land Development Co Ltd	Full Rate		6,870	/lot	5,496		/lot
Henderson Land Development Co Ltd	Spread Rate		2,061	/spread	1,649		/spread

Huaneng Power International Inc	Full Rate		2,570	/lot	2,056		/lot
Huaneng Power International Inc	Spread Rate		771	/spread	617		/spread

Hang Seng Bank Ltd	Full Rate		1,762	/lot	1,410		/lot
Hang Seng Bank Ltd	Spread Rate		529	/spread	423		/spread

Hutchison Whampoa Ltd	Full Rate		8,318	/lot	6,655		/lot
Hutchison Whampoa Ltd	Spread Rate		2,495	/spread	1,997		/spread

Industrial and Commercial Bank of China Ltd	Full Rate		908	/lot	726		/lot
Industrial and Commercial Bank of China Ltd	Spread Rate		272	/spread	218		/spread

Johnson Electric Holdings Ltd	Full Rate		178	/lot	142		/lot
Johnson Electric Holdings Ltd	Spread Rate		53	/spread	43		/spread

Li & Fung Ltd	Full Rate		8,592	/lot	6,873		/lot
Li & Fung Ltd	Spread Rate		2,578	/spread	2,062		/spread

MTR Corporation Ltd	Full Rate		1,313	/lot	1,051		/lot
MTR Corporation Ltd	Spread Rate		394	/spread	315		/spread

New World Development Co Ltd	Full Rate		1,812	/lot	1,449		/lot
New World Development Co Ltd	Spread Rate		544	/spread	435		/spread

Ping An Insurance (Group) Co of China Ltd	Full Rate		5,139	/lot	4,111		/lot
Ping An Insurance (Group) Co of China Ltd	Spread Rate		1,542	/spread	1,233		/spread

PCCW Ltd	Full Rate		606	/lot	485		/lot
PCCW Ltd	Spread Rate		182	/spread	146		/spread

PetroChina Company Ltd	Full Rate		2,970	/lot	2,376		/lot
PetroChina Company Ltd	Spread Rate		891	/spread	713		/spread

PICC Property and Casualty Co Ltd	Full Rate		2,105	/lot	1,684		/lot
PICC Property and Casualty Co Ltd	Spread Rate		632	/spread	505		/spread

Sun Hung Kai Properties Ltd	Full Rate		14,394	/lot	11,515		/lot
Sun Hung Kai Properties Ltd	Spread Rate		4,318	/spread	3,455		/spread

Swire Pacific Ltd “A”	Full Rate		5,135	/lot	4,108		/lot
Swire Pacific Ltd “A”	Spread Rate		1,541	/spread	1,232		/spread

The Wharf (Holdings) Ltd	Full Rate		5,095	/lot	4,076		/lot
The Wharf (Holdings) Ltd	Spread Rate		1,529	/spread	1,223		/spread

Futures Contract	Margin Rate	Initial Margin (US$)		Maintenance Margin (US$)

Gold Futures	Full Rate	8,772	/lot	7,018	/lot
Gold Futures	Spread Rate	2,632	/spread	2,105	/spread

HKFE emphasises that the above are minimum rates and Exchange Participants should set their margin requirements according to their clients' individual circumstances.

Spread Margin Rates
for Three-Month HIBOR Futures

Spread Combination	Initial Margin (HK$)	Maintenance Margin (HK$)
1st month vs 4th month 1st month vs 5th month 1st month vs 6th month 2nd month vs 4th month 2nd month vs 5th month 2nd month vs 6th month 3rd month vs 4th month 3rd month vs 5th month 3rd month vs 6th month	12,230 per spread	9,784 per spread
4th month vs 7th month 4th month vs 8th month 4th month vs 9th month 4th month vs 10th month 5th month vs 7th month 5th month vs 8th month 5th month vs 9th month 5th month vs 10th month 6th month vs 7th month 6th month vs 8th month 6th month vs 9th month 6th month vs 10th month	10,891 per spread	8,713 per spread
1st month vs 2nd month 1st month vs 3rd month 2nd month vs 3rd month	8,919 per spread	7,136 per spread
1st month vs 7th month 1st month vs 8th month 1st month vs 9th month 1st month vs 10th month 2nd month vs 7th month 2nd month vs 8th month 2nd month vs 9th month 2nd month vs 10th month 3rd month vs 7th month 3rd month vs 8th month 3rd month vs 9th month 3rd month vs 10th month	8,093 per spread	6,475 per spread
4th month vs 5th month 4th month vs 6th month 5th month vs 6th month	4,539 per spread	3,631 per spread
7th month vs 8th month 7th month vs 9th month 7th month vs 10th month 8th month vs 9th month 8th month vs 10th month 9th month vs 10th month	2,729 per spread	2,184 per spread

Spread Margin Rates
for One-Month HIBOR Futures

Spread Combination	Initial Margin (HK$)	Maintenance Margin (HK$)
1st month vs 5th month 1st month vs 6th month	9,126 per spread	7,301 per spread
1st month vs 2nd month 1st month vs 3rd month 1st month vs 3rd month	8,342 per spread	6,674 per spread
2nd month vs 5th month 2nd month vs 6th month 3rd month vs 5th month 3rd month vs 6th month 4th month vs 5th month 4th month vs 6th month	4,564 per spread	3,651 per spread
2nd month vs 3rd month 2nd month vs 4th month 3nd month vs 4th month	3,174 per spread	2,539 per spread
5th month vs 6th month	299 per spread	239 per spread

Updated 29 Dec 2008