0388 HK Hong Kong Exchanges and Clearing Limited Stock Price & Latest News
Each futures exchange has its own clearing corporation. Members of these exchanges must clear their trades through the clearing corporation at the end of each trading session and deposit a sum of money based on the clearing corporation’s margin requirements to cover their debit balance. The clearing corporations help to keep markets operating in a timely and orderly manner. This, in turn, gives more entities confidence in entering futures trades to hedge their various exposures. To meet such payment obligations, OCC maintains access to cash from a variety of sources, including a requirement for members to pledge cash collateral to OCC and various agreements with banks and other counterparties (“liquidity facilities”) to provide OCC with cash in exchange for collateral, such as U.S. OCC routinely considers potential market stress scenarios that could affect such payment obligations. Based on such considerations, OCC now believes that it should seek to expand its liquidity facilities ...