HKEX to accept more mainland bonds as margin collateral in November

Cross-market margin offsets are under development to cut separate collateral postings.

Hong Kong Exchanges and Clearing (HKEX) will accept more mainland bonds as margin collateral at its major futures and options clearing houses in November, Securities and Futures Commission (SFC) CEO Julia Leung said.

The move builds on a measure introduced in early 2025, when HKEX’s OTC Clearing Hong Kong began accepting Bond Connect bonds as margin collateral, Leung added.

By August 2026, Chinese government and policy bank bonds accounted for about 18% of the clearing house’s total margin collateral.

The SFC is working with HKEX to improve collateral efficiency and reduce funding costs whilst maintaining risk management standards, Leung said.

Other planned measures include introducing cross-market margin offsets to reduce the need for participants to post collateral separately across clearing houses, as well as enabling same-day settlement for bond deposits and withdrawals at OTC Clear.