Hong Kong Exchanges and Clearing Plans Digital Margin Payments Dec. 14

Hong Kong Exchanges and Clearing (HKEX) plans to introduce a digital payment option Dec. 14 for eligible clearing participants submitting derivatives margin requests after regular trading, extending access beyond standard bank hours.

The service is for eligible clearing participants of Hong Kong Futures Clearing Limited. They can submit prepaid-margin requests from 4 a.m. to 12:30 p.m. ET on Dec. 14, a window that runs from 5 p.m. Dec. 14 to 1:30 a.m. Dec. 15 in Hong Kong. Funds from requests filed during those hours will be available for the corresponding after-hours derivatives session. The service will be optional for participants who qualify.

The added payment period will supplement existing arrangements and give participants more flexibility to manage how they use capital-based position limits outside regular bank hours.

The service stems from a collaboration between HKEX and the Hong Kong Monetary Authority to explore using the digital Hong Kong dollar for after-hours margin payments.