HONG KONG Oct 10 Hong Kong Exchanges & Clearing
(HKEx) will apply a deeper discount on U.S. Treasuries used as
margin collateral, according to a circular from the clearing
house effective from Thursday.
While the circular did not give a reason for the change, a
government shutdown in the United States has raised concerns
about the outcome of talks to raise the debt ceiling there and
prevent a default on U.S. government paper.
HKEx, the holding company for The Stock Exchange of Hong
Kong Ltd, Hong Kong Futures Exchange Ltd and Hong Kong
Securities Clearing Company Ltd, will now apply a haircut of 3
percent versus the current 1 percent for bills with a maturity
of less than a year. The haircuts applied to longer-dated bills
"Participants should make necessary funding arrangements to
cover any shortfall to their margin requirements resulting from
the increase in the U.S. Treasuries haircut," the clearing house