Hong Kong Exchanges and Clearing Limited 0388 HK Company Profile & Facts
The Commission received comments asserting that the proposal would put public retirement funds at risk to cover investing choices made by Clearing Members. The Commission has carefully considered the risk to investors' retirement funds relative to the benefits of expanding the Non-Bank Liquidity Facility. Further, the terms of the facility would require OCC to provide Eligible Securities ( e.g.,Treasuries) subject to haircuts negotiated by OCC and its counterparties to address the potential credit risk to OCC's counterparties. Moreover, the terms of the facility would require OCC to pay the costs of any covering transactions required if OCC were to fail to perform its obligation. As described above, the expansion of commitments in the Non-Bank Liquidity Facility would reduce the likelihood that OCC would have insufficient financial resources resulting from a Clearing Member default. OTC Clear created OCASS, the OTC Clearing and Settlement System, for OTC Derivatives clearing...