Hong Kong Exchanges and Clearing (HKEX)
HK OTC rules add to cross-border concerns
The Securities and Futures Commission and Hong Kong Monetary Authority released a joint consultation on their plans to overhaul OTC derivatives regulation in October. But how will the rules fit with the patchwork of legislation drawn up elsewhere? And…
Asia Risk Congress 2011: CCP users need tactical collateral planning due to Basel III capital squeeze
The increasing need for liquid, high grade assets under Basel III capital requirements will likely squeeze liquidity in the types of eligible collateral required by central counterparty (CCP) clearings, meaning end-users of CCPs need to tactically plan…
On the move
On the move
Brics to cross-list equity derivatives via new alliance
A new ‘Brics exchanges alliance’ has been formed to allow investors to trade equity index derivatives of each participating exchange in local currencies. The move comes as Asian exchanges increasingly are establishing alliances to promote cross-border…
Lookback
Lookback
CME delays dollar/renminbi futures due to settlement system issues
The US exchange operator hopes to create a transparent, liquid futures contract for renminbi, offering an alternative to the privately negotiated market. But the launch was delayed due to settlement system problems and some traders believe the exchange…
Shortage of underlyings is stunting development of renminbi products, say providers
Market participants say a lack of renminbi-denominated underlyings is slowing down the development of renminbi-denominated equity-linked products
Chi-East moves to connect Asia's dark pools
Joint venture between Singapore Exchange and Chi-X Global expects to announce four new members in the next two months
Risks lie ahead for China's internationalisation of renminbi, warn IMF, PBoC and HKEx officials
IMF Hong Kong representative, a former PBoC MPC member and HKEx chief warn of risks for China as the internationalisation of the renminbi starts to gather pace.
HKEx secondary market facility needs to withstand extreme offshore CNY liquidity crunch
HKEx says its proposed renminbi secondary market liquidity support mechanism for renminbi listed stocks is undergoing stress tests to ensure the facility is sizeable enough to support the healthy development of an offshore renminbi equities market in…
Capital gains tax provisions on QFII stalk China A-share ETFs
Fund managers active in offshore-listed China A-share ETFs say a 10% provision set aside for capital gains tax on A-share trading related to P-note issues is increasing tracking error for some funds. Meanwhile, others are ignoring the tax risk altogether…
SFC's Martin Wheatley helps to crack the structured products code
Cracking the code
Electronic trading and clearing of NDFs poised for growth in Asia
Asian regulators are expected to closely follow their peers in the US and Europe in demanding swap execution facilities and over-the-counter derivatives clearing in Asia. This may bolster e-trading for NDFs based on Asian currencies
HKEx to launch renminbi secondary market facility to support IPOs
The exchange says the new offshore renminbi secondary market liquidity pool will not introduce additional counterparty or forex risk, thanks to a back-to-back arrangement with interested partner banks and brokers
BNP Paribas awarded third-party clearing waiver by SFC; predicts tectonic shift in clearing practices
BNP Paribas Securities Services has secured a waiver from the SFC, which could mark a turning point for the outsourcing of clearing services in Hong Kong
Asian Financial Forum: China and Hong Kong to collaborate more on cross-border access and cross-listings of ETFs, says CSRC chief
Hong Kong and Shanghai are set to more closely align clearing and settlement systems enabling the cross-listing of instruments such as exchange-traded funds. Meanwhile, the Chinese authorities plan to encourage state-owned enterprises to launch so-called…
HKEx moves to introduce margins for cash clearing members
HKEx plans to beef up its risk management following the bankruptcy of Lehman Brothers in September 2008 by introducing margin rules and seeking more funds from cash clearing members. The move would bring cash clearing more in line with existing…
Hong Kong lawmakers to enforce mandatory CCP by the end of 2012
Hong Kong joins Japan in mandating central counterparty clearing for OTC derivatives with CCPs and a central repository expected to be set up in the coming months.
Exchanges urge US to keep forex swaps and forwards under Dodd-Frank
The World Federation of Exchanges has urged US Treasury secretary Tim Geithner to keep forex derivatives under Dodd-Frank to block banks from using the exception for interest rate derivatives transactions. But a senior Westpac banker and rival trade…
On the move
On the move
Standard Bank to store gold in Asia for new Hong Kong EFT
South Africa’s Standard Bank offers its metals and market making capabilities for a new gold ETF in Hong Kong.
HKEx names former CSRC director to head mainland development
The Hong Kong Exchange's new hire, Yang Qiumei, was recently deputy director-general in the department of investment fund supervision at the China Securities Regulatory Commission, where she was in charge of matters related to QFII and QDII
Hong Kong poised to launch dividend futures
Hong Kong Exchange and Clearing looks set to join rival Singapore Exchange in offering dividend futures contracts