HK ETF managers urged to comply promptly to new rules

Author: | Published: 5 Sep 2011

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 collateral’s market value must...