OTC Clearing Hong Kong Limited has completed its routine recalculation of the Rates and FX Guarantee Fund as of 1 August 2024, per Rule 1503 of the OTC Clear Rates and FX Derivatives Clearing Rules. The calculation period covered July 1 to July 31, 2024. The Guarantee Fund has been adjusted to HKD 4,052 million. Clearing Members can find their updated contribution requirements in a report on OASIS, distributed at 2:30 p.m. on 1 August 2024. Additional collateral must be provided by 4:00 p.m. on 2 August 2024, with any shortfalls demanded by 4:00 p.m. on the same day. The Guarantee Fund ensures protection against potential defaults through stress testing under various scenarios, with reverse stress testing conducted quarterly.
Resources: https://www.hkex.com.hk/-/media/HKEX-Market/Services/Circulars-and-Notices/Participant-and-Members-Circulars/OTC-Clear/2024/Circular_OTCRM_Aug_2024_026.pdf