People’s Republic of China–Hong Kong Special Administrative Region: Financial Sector Assessment Program-Detailed Assessment of Observance-HKFE Clearing Corporation Limited (HKCC) Principles for Financial Market Infrastructures

June 15, 2021

Preview Citation

Format: Chicago

People’s Republic of China–Hong Kong Special Administrative Region: Financial Sector Assessment Program-Detailed Assessment of Observance-HKFE Clearing Corporation Limited (HKCC) Principles for Financial Market Infrastructures, (USA: International Monetary Fund, 2021) accessed December 3, 2024

Summary

The HKFE Clearing Corporation Limited (HKCC) observes the CPSS/IOSCO Principles for Financial Market Infrastructures (PFMI). It has a sound, coherent and transparent legal basis. As an integral part of the Hong Kong Exchanges and Clearing Limited (HKEX Group), the HKCC has a comprehensive and adequate risk management framework to address financial, business, and operational risks. Participant assets as well as HKCC’s collaterals are safely kept in several banks and regulated central securities depositories. The credit and liquidity risks are minimized by having a robust risk management framework, including rigorous stress testing methodology and access to qualifying liquid resources. Furthermore, the HKCC has clear rules and procedures to handle and manage a participant’s default procedures. Moreover, the HKCC has established risk management framework to handle operational risk, including cyber risk, and business continuity management that addresses events posing significant risk of operational disruption.

Subject: Collateral, Credit risk, Currencies, Financial institutions, Financial regulation and supervision, International organization, Liquidity risk, Monetary policy, Money, Operational risk

Keywords: Collateral, Credit risk, Currencies, Derivatives Clearing, Global, HKCC Participants, HKCC rule, Hong Kong exchange fund bill, Hong Kong securities market, Liquidity risk, Operational risk, People's Republic of China-Hong Kong Special Administrative Region FSAP

Publication Details

Pages:

129
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2021/122
Stock No:

1HKGEA2021010
ISBN:

9781513585673
ISSN:

1934-7685

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