How It Works

Clearing for the HKMEx market is provided by LCH.Clearnet through the Extensible Clearing System (ECS) platform, which provides an integrated and flexible means of clearing trades across a number of product classes. HKMEx will submit matched trades to the LCH.Clearnet on a real-time basis via an automated feed. The clearing platform is open for the registration of the trades from 08.00 to 23.00 hrs Hong Kong time. Please note that Hong Kong time is GMT+8 and BST+7. 

Following receipt and confirmation of eligible transactions into the ECS system, trades are governed under the rules of LCH.Clearnet Rulebook.

Members of LCH.Clearnet are eligible to clear products subject to approval.  More information on becoming a member can be found here.

In addition to standard Membership conditions the following requirements apply with regard to HKMEx clearing:

a. Clearing members need to have the ability to pay funds within the Hong Kong business day to the LCH.Clearnet appointed Asian Correspondent Bank account.

b. Clearing members need to be approved by HKMEx as per their membership condition for clearing services.

c. Clearing members need to have an account with the HKMEx approved Precious Metals Depository or have an agent in place, to carry out physical deliveries of Precious Metals.

Intraday margin calculations will take place hourly from 8.00am until 3.00pm UK time on all HKMEx trading days. The LCH.Clearnet Risk Department may wish to undertake additional intraday margin calls (for example, in the event of a significant market move in the HK time zone), using the LCH.Clearnet PPS or in emergency cases using the appointed Asian Correspondent bank.

At the close of HKMEx business each day, LCH.Clearnet will recalculate each member’s Initial Margin and Variation Margin amounts and, call any additional margin amounts required via the PPS process.

Margin will be called after the Clearing run by 09:00 UK time on the next UK business day via UK PPS.