THE Hong Kong Futures Exchange has announced that from Monday there will be yet another increase in minimum margin and maintenance margin requirements to reflect the market's volatility.
The minimum margin for clients to trade in Hang Seng Index futures will be increased to $70,000, equivalent to 1,400 index points, from $50,000.
The maintenance margin will jump to $56,000 from $42,500.
The margin requirement for exchange members will be revised to $55,000, or 1,100 index points.
Chief executive Ivers Riley said the revisions were undertaken to take into account volatile market conditions, which commonly saw intra-day fluctuations of 500 points.
''This revision will definitely facilitate the clearing house to perform its risk-management function and our members in maintaining their clients' margin requirement,'' he said.