The Hong Kong Securities and Futures Commission has optimized the regulatory framework for single-day leverage and inverse products to ensure orderly trading in the market

robot
Abstract generation in progress
Mars Finance News: On July 24, the Hong Kong Securities and Futures Commission issued today a revised circular that will require leveraged and inverse products whose gearing and exposure capacity are affected by changes in market conditions to adopt a flexible gearing structure. Under this structure, the leverage ratio may be adjusted daily within the existing upper limit (i.e., leveraged products at 2x and inverse products at -2x). Therefore, product providers may, when necessary, reduce the target leverage ratio for such products, allowing greater room to manage them during periods of high trading volume. The leverage ratio for such products on the next trading day will be disclosed after the daily market close. Potential daily adjustments to the leverage ratio also help deepen investors’ understanding that leveraged and inverse products are single-day products, reminding investors that these products are not suitable to hold for more than one day.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned