HKEX and LCH look to expand eligible collateral
Chinese government bonds in the frame as clearing houses seek to boost non-cash margin options
Hong Kong’s stock exchange and LCH are working to expand the list of securities they will accept as collateral, with the aim of combatting the Asia region’s heavy reliance on cash for the exchange of margin on derivatives trades.
“In this high-interest-rate environment, everyone is struggling and also trying to find ways to deliver the cheapest-to-deliver [collateral] in order to optimise their margin calls… As an exchange, we always need to do more to widen the eligible collateral that can be
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