19.11 Capital Requirement for Marginable Futures Contracts

Past version: Effective up to 28 Dec 2014

(1) For the purpose of calculating counterparty risk requirements under the Third Schedule of Securities and Futures (Financial and Margin Requirements for Holders of Capital Markets Services Licences) Regulations:
(a) "margin deficiency" referred to in the Securities and Futures (Financial and Margin Requirements for Holders of Capital Markets Services Licenses) Regulations is the amount required for the Customer Asset Value to meet the Variation Margin and Maintenance Margin, and in the case where Customer Asset Value is not sufficient to meet Variation Margin, the margin deficiency is the amount of Maintenance Margin; and
(b) "negative equity" referred to in the Securities and Futures (Financial and Margin Requirements for Holders of Capital Markets Services Licenses) Regulations is the amount required for the Customer Asset Value to meet the Variation Margin.
(2) For the avoidance of doubt, a Trading Member shall compute Total Risk Requirement for Marginable Futures Contracts in the same manner as prescribed in the Third Schedule of the Securities and Futures (Financial and Margin Requirements for Holders of Capital Markets Services Licenses) Regulations.