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Hong Kong’s SFC issues risk management guidance for futures brokers

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Futures brokers would also be required by law to collect any outstanding margin calls from clients who fail to make two settlement calls within the previous 30 calendar days. Futures brokers will be required to follow any applicable policies to force liquidation. Additionally, they will need to set thresholds to allow concessionary margining.

Julia Leung, the SFC’s Deputy Chief Executive Officer and Executive Director of Intermediaries, said:

Recent market shocks have highlighted the difficulties futures brokers face during times of volatility. These guidelines are intended to give futures brokers timely guidance in managing the risks associated with their business.

The consultation paper comes after the regulator’s ‘fact-finding exercise’ conducted in 2021. SFC noted that guidelines were developed by taking into account regulations in major jurisdictions, and obtaining feedback from a broad range of market participants.

The post Hong Kong’s SFC issues risk management guidance for futures brokers appeared first on LeapRate.



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