HKEX Enhances Margin Collateral Arrangements

Hong Kong Exchanges and Clearing Limited (HKEX) has announced enhancements to its margin collateral arrangements, effective 2 October 2025.

These changes aim to improve market efficiency and reduce costs for participants, reinforcing Hong Kong’s position as a leading risk management hub.

Key updates include:

• Aligning interest calculations for cash margin collateral with international practices by paying an overnight reference rate, less a handling fee. The handling fee will start at 0.8% (October 2025 to December 2026) and gradually reduce to 0.5% by the end of 2028.
• Additionally, the annual accommodation charge for non-cash collateral will be halved from 0.5% to 0.25%.