Margins paid up on time
The securities clearing house and the futures exchange both collected margins from brokers yesterday in a bid to protect the market during the current slump.
Hongkong Clearing yesterday collected $20 million in intra-day marks from five brokerage houses.
Intra-day marks are a risk management measure where the clearing house marks all brokers' positions at 11 am.
If the shares held are at a lower price than at the time they bought the stock, they are required to pay the difference.
Clearing house official Betty Chan Shiu-fong said the five houses made the payments without difficulties.
The Hong Kong Futures Exchange also collected two margin calls yesterday, one at $20,000 per contract and the other at $31,500 per contract.
A margin call is a risk management measure where the exchange asks brokers to put more money into the futures clearing house to cover loss-making positions.
Futures exchange official Ross Lai Kar-nin said all futures traders gave their margin calls smoothly.
