China Securities Depository and Clearing Hong Kong Company Limited

HKEX continues to hold 100 per cent of the voting ordinary shares of OTC Clear. The Chicago Mercantile Exchange or CME is a futures exchange which trades in interest rates, currencies, indices, metals, and agricultural products. While clearing corporations may facilitate all forms of transactions, they are most helpful in more complex transactions, such as futures contracts.

Shenzhen-Hong Kong Stock Connect is a securities trading and clearing links program developed by The Stock Exchange of Hong Kong Limited, the Shenzhen Stock Exchange, Hong Kong Securities Clearing Company Limited and China Securities Depository and Clearing Corporation Limited. Authorized by parent company CSDC, CSDCHK is planning to provide the following services. Net MtM Losses shall be collected from Members in cash on T+0 settlement basis (by day-end on trade day) through Clearing House or Clearing Company.

If you deal with a company which is not licensed by the SFC, you may not be protected by the regulatory framework enforced by the SFC. In April 2002, HKEX launched a study to consider the clearing company delisting of "penny stocks" to improve market efficiency. Its 25 July 2002 proposal to cancel listings of companies trading below HK$0.50 for 30 straight days hit penny stocks hard.

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.

Under SZ-HK Stock Connect, SEHK, a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited , and SZSE will establish mutual order-routing connectivity and related technical infrastructure to enable investors of their respective markets to trade designated equity securities listed in the other’s market. Major securities products include equity securities, depositary receipts, debt securities, unit trusts/mutual funds (i.e. ETFs and REITs) and structured products. Derivative products include index and stock futures and options, interest rate and fixed income products and gold futures. OTC Clear started offering OTC derivatives clearing services in November 2013.