Hong Kong lawyers have warned fund mangers to
respond quickly following the publication of tough new
standards on synthetic exchange traded funds (ETFs).
The Securities and Futures Commission (SFC) this
week announced domestic synthetic ETF managers would be
required to top-up the collateral level on each fund to at
least 100% collateralization of counterparty risk.
But where the collateral is taken in the form of equity
securities, the collaterals market value must...