THE Hong Kong Futures Exchange Clearing Corp is planning to expand its reserve fund through higher member contributions to cope with increasing market risk.
The clearing corporation has already decided to allocate the interest income generated from the investment of members' deposits to the reserve fund on a quarterly basis starting this year.
It has initiated a consultation on collecting additional deposits from members based on their respective risk exposure in case of any substantial increase of market risk.
'Since the demand for additional deposits may create impact on some members, the clearing corporation would like to obtain members' input to this issue,' it told members in a letter.
On June 1, the reserve fund had $226.2 million, made up largely of $162 million in members' deposits.
Other components were bank guarantees, insurance, interest income and revenue reserves.
