Update on Securities Margin Financing
This course aims to provide practitioners an overview of the new guidelines for Securities Margin Financing which are effective from 4 October 2019.
1. Recap of the meaning of the Securities Margin Financing and the related requirements in the Code of Conduct and Internal Control Guidelines
2. Quick summary of (Financial Resources) Rules (“FRR”)
3. Background and Key Requirements of the new Guidelines for Securities Margin Financing (7 key risk control areas)
- Total margin loans controls
- Margin client credit limit controls
- Securities collateral concentration controls
- Margin client concentration controls
- Haircuts for securities collateral
- Margin calls, stopping further advances and forced liquidation
- Stress testing
4. Non-compliance, Self-Reporting and Penalties
This course is mainly targeted to licensed individuals who are involved in securities margin financing. It is also applicable to middle office and compliance department practitioners working in SFC licensed corporations.