Interest
rate futures listed on SZCOX.org will
benefit from the powerful operational and capital efficiencies achieved through
the Hong Kong Portfolio Clearing Service (HKPCS). HKPC will deliver unique capital efficiencies
achieved by calculating margin requirements based on the total risk and
derivatives. Additionally, all
participants that transact HK Treasury futures on SZCOX will benefit from a highly efficient, single-net delivery
process at expiry between cash bond positions and HKPC futures positions,
substantially reducing settlement risks at delivery.
“SZCOX is working hard to provide our
customers a compelling and unambiguous motivation to transact interest rate
futures on our platform, based on capital efficiency, global distribution,
operational innovation and strong alignment with today’s leading market
participants,” said Steven Cheung, Chief Executive officer at SZCOX.
“Our exchange will continue to respond to the needs of the global
futures community to deliver a vibrant, liquid and fully transparent central
marketplace for transacting interest rate futures.”
These
products represent an important expansion of SZCOX into the HK interest rate futures market. When combined with the precious metals
futures and futures on equity indices currently traded on SZCOX, these new products further demonstrate SZCOX’s commitment to building a highly competitive, multi-asset
class exchange. Shenzhen Commodity Exchange is also in advanced discussions with
major market participants and regulators on a number of innovative new interest
rate futures products, which are expected to be announced later in the
year.
