Futures and options are both derivatives. Their structure and the way they work are complicated, and involve leverage. They are high risk and suitable for experienced investors or people who are high risk tolerant.
Hang Seng Index (HSI), the benchmark of the Hong Kong stock market, is one of the best known indices in Asia and widely used by fund managers as their performance benchmark.
The HSI is a market capitalisation-weighted index (shares outstanding multiplied by stock price) of the constituent stocks. The influence of each stock on the index's performance is directly proportional to its relative market value. Constituent stocks with higher market capitalisation will have greater impact on the index's performance than those with lower market capitalisation. The constituent stocks are grouped under Commerce and Industry, Finance, Properties and Utilities sub-indices.
The latest list of constituent stocks is available on the website of Hang Seng Indexes Company Limited at The latest list of constituent stocks
To meet the growing interests in the Hong Kong stock market and rising demand for related hedging tools, the Hong Kong Futures Exchange (HKFE) first introduced HSI futures contracts in May 1986.
Advantages
The HSI futures and options provide investors with a set of effective instruments to manage portfolio risk and to capture index arbitrage opportunities. The popularity of Hang Seng Index futures and options has developed gradually with increasing domestic and international investors' participation.
- Proven Markets
HSI futures and options allow experienced and novice investors alike to participate in the performance of constituent stocks in the index. As both local and international investors regard Hang Seng Index as a time-tested benchmark for the Hong Kong equity market and yardstick of portfolio performance, these contracts are consistently used by different investors for trading and risk management purposes. - Cost Effective
HSI futures and options facilitate hedging activities in a cost-effective way as these contracts are traded on a margin basis. The margin to carry an open position is only a fraction of the contracted value. - Low Transaction Costs
As the total value of high-capitalisation stocks represented in each HSI futures and options contract is substantial and only one commission is charged to establish or liquidate a contract, transaction costs are low when compared to purchasing or selling the constituent stocks. - Clearing House Guarantee
HSI futures and options are registered, cleared and guaranteed by the HKFE Clearing Corporation (HKCC), a wholly-owned subsidiary of the HKFE. The HKCC acts as the counter-party to all open contracts, which effectively eliminates counter-party risks between its HKCC Participants. The HKCC guarantee does not cover an HKCC Participant's obligations to its clients. Investors should exercise due care and diligence when deciding through whom they will conduct business.
To meet the needs of retail investors with an interest in the Hong Kong stock market, the Hong Kong Futures Exchange (HKFE) has introduced a Mini-Hang Seng Index (Mini-HSI) futures contract since 9 October 2000. To complement Mini-HSI futures, Mini-HSI option contracts was launched on 18 November 2002.
The compact, Mini-HSI futures & option contracts are based on Hong Kong's benchmark Hang Seng Index (HSI), which is also the underlying index for the larger sized HSI futures & option contracts. The contract multiplier of the Mini-HSI futures & option contracts are HK$10.00 or one-fifth the size of the HSI futures & option contracts. Same as the HSI futures & option contracts, the settlement method for the mini contracts are cash settled.
Local retail investors who have less risk capital and lower hedging requirements will find the Mini-HSI futures and option contracts the most appropriate investment tools as well as hedging instruments for managing their market risk.
Advantages
- Tailor-made for retail investors
The Mini-HSI futures & option contracts inherit the advantages of the larger sized HSI futures & option contracts but are tailored for individuals with limited risk capital. The smaller contract size allows experienced and novice investors alike to participate in the performance of the constituent stocks in the index in a graduated scale. - Low Costs
As the Mini-HSI futures & option contracts is one-fifth the size of the HSI futures & option contracts, the corresponding margin requirements and commission are much lower. - Margin offset
One hundred per cent margin offset between Mini-HSI and HSI futures, and between Mini-HSI and HSI options allows for flexible investment management. - Electronic Trading Platform
Like all other products traded on the Exchange, Mini-HSI futures & option contracts will be traded electronically on HKATS, where all orders are matched based on price and time priority. Bid, offer and transaction prices are disseminated in real-time to the public and providing the highest level of price and market transparency. - Clearing House Guarantee
Mini-HSI futures & option are registered, cleared and guaranteed by the HKFE Clearing Corporation (HKCC), a wholly-owned subsidiary of the HKFE. The HKCC acts as the counter-party to all open contracts, which effectively eliminates counter-party risks between its HKCC Participants. The HKCC guarantee does not cover an HKCC Participant's obligations to its clients. Investors should exercise due care and diligence when deciding through whom they will conduct business.
H-shares Index Futures
There has been growing investors' interest in China-related securities resulting from the rapid expansion of Mainland economy. The Hang Seng China Enterprises Index (HSCEI) is a market capitalisation-weighted stock index which is compiled and calculated by Hang Seng Indexes Company Limited. The HSCEI tracks the performance of major H-shares. H-shares are Renminbi-denominated shares issued by People'S Republic of China (PRC) issuers under PRC law and listed on the Stock Exchange of Hong Kong, the par values of which are denominated in Renminbi, and which are subscribed for and traded in Hong Kong dollars.
The latest list of constituent stocks is available on the website of Hang Seng Indexes Company Limited at The latest list of constituent stocks
The H-shares Index futures were introduced in 8 December 2003 based on the underlying HSCEI.
H-shares Index Options
Following the immediate success of the H-shares Index futures, the H-shares Index options were introduced in 8 June 2004. On 8 February 2010, Flexible Index Options with flexibility in setting strike prices and expiry months were introduced to facilitate the booking of customized over-the-counter option contracts.
Advantages
- Flexible Trading Strategies
H-shares Index Futures and Options provide opportunities for long or short strategies. Besides, investors can use H-shares Index Futures and Options as hedging strategies (to protect the HSCEI portfolios against a declining market) or spreading strategies (to profit from the relative performance of two markets, e.g. HSCEI Vs HSI). - Fast Execution
A cost-effective way to track and establish broad market exposure linked to the performance of H-share companies. - Efficient Use of Capital
H-shares Index Futures and Options are traded on a margin basis. The capital outlay is much less than buying a H-share companies portfolio. - Low Transaction Costs
The transaction costs for trading H-shares Index Futures and Options are lower than trading a basket of constituents in HSCEI. - Clearing House Guarantee
Futures and Options contracts are registered, cleared and guaranteed by HKEx's Clearing House, eliminating counter-party risk. (The Clearing House guarantee does not cover a Clearing Participant's obligations to its clients. Investors should exercise due care and diligence when deciding through whom they will conduct business.)
The trading and hedging needs relating to H-shares from retail investors are growing continously. As volatility and index level increase, the high profit and loss swing becomes a hurdle for retail investors’ participation. A mini H-shares Index futures would meet the needs of customers who have a smaller risk capital.
The underlying index of Mini H-shares Index futures is the Hang Seng China Enterprises Index (HSCEI), the same as the standard H-shares Index futures contract. The HSCEI is a market capitalisation-weighted stock index which is compiled and calculated by Hang Seng Indexes Company Limited.
Advantages
- Tailor-made for retail investors
The Mini H-shares Index futures contracts inherit the advantages of the larger sized H-shares Index futures contracts but are tailored for individuals with smaller risk capital. The smaller contract size allows experienced and novice investors alike to participate in the performance of the H-shares market in a graduated scale. - Transaction Costs
Comission levy will be exempted for the first six months of trading of Mini H-shares Index futures. No stamp duty is required for trading futures and options product. - Margin offset
The client and clearing house margin levels for H-shares Index futures contract will be set at one-fifth of the respective margins for the H-shares Index futures contract. Margin offset will be applicable to the product group containing H-shares Index contracts in net margined accounts, with delta/spread between the Mini H-shares Index and H-shares Index contracts set at a ratio of 5 to 1. - Fungibility
The Mini H-shares Index futures contract and the H-shares Index futures contract are fungible in that opposite positions in these two contracts can be offset at the ratio of one H-shares Index futures contract against five Mini H-shares Index futures contracts. Positions in these two exchange contracts will be netted automatically (in the case of House and Market Making Accounts) or may be closed out in accordance with the Clearing House Rules.
HKEx’s VHSI futures are an innovative tool for investors to manage volatility risk in Hong Kong’s stock market. VHSI Futures provide a pure play on implied volatility independent of the direction and level of stock prices.
Trading Opportunities
- Trade the direction of implied volatility
- Trade implied volatility spreads
- Hedge volatility risk of HSI options
- Get volatility exposure for portfolio diversification
- Arbitrage between HSI options and VHSI futures
Advantages
- Cost-effective way to manage volatility risk
Cost effective and leveraged way to manage volatility risk in relation to HSI based equity derivatives products. - No requirement to delta hedge
Convenient and cost effective exposure to investors who can implement volatility tradingstrategies without the need to adjust positions for underlying market delta movements. - Continuous Liquidity by market makers
Market makers will provide continuous two-sided markets throughout the trading day to facilitate trading liquidity. - Reduced counterparty risk
Counterparty risk can be reduced with HKFE Clearing Corporation Limited, an HKEx subsidiary, acting as central counterparty to every trade.
RMB Currency Futures
The rapid growth of Hong Kong’s renminbi (RMB) market (the CNH market) since its inception has been one of the most significant developments for investors and risk managers with RMB exposure.
Hong Kong: The Premier Offshore RMB Centre
- Largest pool of RMB liquidity outside Mainland China
- Global hub for offshore RMB trade settlement
- RMB clearing platform with a global network (RTGS system)
Benefits of Trading USD/CNH Futures
- Exchange of principal at expiration They are the world’s first deliverable RMB currency futures. Quoted, margined and settled in RMB, the contract will be well positioned to complement the deliverability of the CNH market and the increasing number of RMB hedging and investment products available in Hong Kong.
- Hedge or take on RMB exchange rate risk Investors will be able to hedge or take on RMB exposure with USD/CNH futures. There is no restriction on the use of CNH, so the CNH market is a good reflection of supply and demand.
- Quoted in standard interbank FX terms The contract is quoted in standard interbank FX terms: RMB to USD (e.g. RMB6.2486 per USD).
- Delivery of USD for RMB USD/CNH futures will be settled at expiration by exchanging principal (contract size in USD) versus payment in RMB based on the spot USD/CNY(HK) fixing published by the Treasury Markets Association in Hong Kong.
- Leverage Futures contracts are traded on a margin basis so only a small fraction of the total exposure is required upfront.
- Transparent Pricing USD/CNH futures will be offered exclusively on HKEx’s electronic derivatives trading platform, which offers transparent pricing in a regulated centralised marketplace.
- Access for global market participants Trading of USD/CNH futures at HKEx will give market participants from around the world, including banks, funds, trading companies and individual investor, access to the RMB.
- Minimal counterparty risk Trades will be cleared and settled by HKFE Clearing Corporation Limited, an HKEx subsidiary, acting as central counterparty in every transaction.
- Market Makers providing liquidity
Market makers will provide continuous two-sided markets throughout the trading day to enhance liquidity.
CNH/USD Futures
HKEX launched its USD/CNH futures, the word’s first deliverable RMB currency futures, in September 2012 to provide greater capital efficiency and flexibility for managing RMB currency exposure. HKEX’s CNH/USD futures, denominated, margined and cash steeled in USD, complement its physically-delivered USD/CNH futures product and support the expanding offshore RMB market.
Trading Benefits
- Margin and settlement in USD
- Trading opportunities with USD/CNH futures
- Block trade facility offers OTC flexibility and CCP benefit
EUR/CNH Futures
The growing importance and mutual recognition of the European Union (EU) and China as major trading partners have created rising demand for capita-efficient risk management tools to hedge Renminbi (RMB) currency rick against Euro (EUR), Furthermore, one of the China’s RMB exchange rate reforms is the development of a managed float regime with reference to a basket of currencies, including the EUR. Against that backdrop, HKEX’s EUR/CNH futures provide transparency in price discovery reflecting exchange rate expectations driven by market forces.
Trading Benefits
- Capital efficiency of exchange-traded futures
- Transparent pricing in a centralized trading environment
- Block trades offer OTC flexibility with minimal counterparty
- Dedicated liquidity providers to provide narrow bid-ask spreads
- Evening trading covers European business hours
JPY/CNH Futures
Economic interdependence of Japan and China, reflected in the large trade volumes between the two countries have created strong demand for inter-currency payments between Renminbi (RMB) and Japanese yen (JPY). Furthermore, JPY encompasses among the largest components of the basket of currencies referenced under Mainland China’s managed float exchange rate regime. Against that backdrop, HKEX’s JPY/CNH futures provide transparency in price discovery reflecting exchange rate expectations driven by market forces.
Trading Benefits
- Capital efficiency of exchange-traded futures
- Transparent pricing in a centralized trading environment
- Block trades offer OTC flexibility with minimal counterparty
- Dedicated liquidity providers to provide narrow bid-ask spreads
- Trading covers business hours in East Asia
AUD/CNH Futures
Australia’s emergence as one of China’s largest trade partners in commodities has created strong demand for inter-currency payments between Renminbi (RMB) and Australian dollars (AUD). AUD is the 5th most traded currency in the world as well as a component if the basket of currencies referenced by China in its managed float exchange rate regime. In addition, given Australian‘s vast mining and mineral operation, AUD offers diversification benefits through its strong link with commodities’ prices. HKEX’s AUD/CNH futures provide transparency in price discovery reflecting exchange rate expectations driven by market forces.
Trading Benefits
- Capital efficiency of exchange-traded futures
- Transparent pricing in a centralized trading environment
- Block trades offer OTC flexibility with minimal counterparty
- Dedicated liquidity providers to provide narrow bid-ask spreads
- Same Asian tie zone for liquidity aggregation
Hang Seng Index (HSI), the benchmark of the Hong Kong stock market, is one of the best known indices in Asia and widely used by fund managers as their performance benchmark. The HSI is a market capitalisation-weighted index (shares outstanding multiplied by stock price) of the constituent stocks. The influence of each stock on the index's performance is directly proportional to its relative market value. Constituent stocks with higher market capitalisation will have greater impact on the index's performance than those with lower market capitalisation. The constituent stocks are grouped under Commerce and Industry, Finance, Properties and Utilities sub-indices.
The latest list of constituent stocks is available on the website of Hang Seng Indexes Company Limited at The latest list of constituent stocks
Following the success of HSI futures, HSI options contracts were introduced in March 1993. On 8 February 2010, Flexible Index Options with flexibility in setting strike prices and expiry months were introduced to facilitate the booking of customized over-the-counter option contracts.
Advantages
The HSI futures and options provide investors with a set of effective instruments to manage portfolio risk and to capture index arbitrage opportunities. The popularity of Hang Seng Index futures and options has developed gradually with increasing domestic and international investors' participation.
- Proven Markets HSI futures and options allow experienced and novice investors alike to participate in the performance of constituent stocks in the index. As both local and international investors regard Hang Seng Index as a time-tested benchmark for the Hong Kong equity market and yardstick of portfolio performance, these contracts are consistently used by different investors for trading and risk management purposes.
- Cost Effective HSI futures and options facilitate hedging activities in a cost-effective way as these contracts are traded on a margin basis. The margin to carry an open position is only a fraction of the contracted value.
- Low Transaction Costs As the total value of high-capitalisation stocks represented in each HSI futures and options contract is substantial and only one commission is charged to establish or liquidate a contract, transaction costs are low when compared to purchasing or selling the constituent stocks.
- Clearing House Guarantee The HSI futures and options provide investors with a set of effective instruments to manage portfolio risk and to capture index arbitrage opportunities. The popularity of Hang Seng Index futures and options has developed gradually with increasing domestic and international investors' participation.
To meet the needs of retail investors with an interest in the Hong Kong stock market, the Hong Kong Futures Exchange (HKFE) has introduced a Mini-Hang Seng Index (Mini-HSI) futures contract since 9 October 2000. To complement Mini-HSI futures, Mini-HSI option contracts was launched on 18 November 2002.
The compact, Mini-HSI futures & option contracts are based on Hong Kong's benchmark Hang Seng Index (HSI), which is also the underlying index for the larger sized HSI futures & option contracts. The contract multiplier of the Mini-HSI futures & option contracts are HK$10.00 or one-fifth the size of the HSI futures & option contracts. Same as the HSI futures & option contracts, the settlement method for the mini contracts are cash settled.
Local retail investors who have less risk capital and lower hedging requirements will find the Mini-HSI futures and option contracts the most appropriate investment tools as well as hedging instruments for managing their market risk.
Advantages
- Tailor-made for retail investors The Mini-HSI futures & option contracts inherit the advantages of the larger sized HSI futures & option contracts but are tailored for individuals with limited risk capital. The smaller contract size allows experienced and novice investors alike to participate in the performance of the constituent stocks in the index in a graduated scale.
- Low Costs As the Mini-HSI futures & option contracts is one-fifth the size of the HSI futures & option contracts, the corresponding margin requirements and commission are much lower.
- Margin Offset One hundred per cent margin offset between Mini-HSI and HSI futures, and between Mini-HSI and HSI options allows for flexible investment management.
- Electronic Trading Platform Like all other products traded on the Exchange, Mini-HSI futures & option contracts will be traded electronically on HKATS, where all orders are matched based on price and time priority. Bid, offer and transaction prices are disseminated in real-time to the public and providing the highest level of price and market transparency.
- Clearing House Guarantee Mini-HSI futures & option are registered, cleared and guaranteed by the HKFE Clearing Corporation (HKCC), a wholly-owned subsidiary of the HKFE. The HKCC acts as the counter-party to all open contracts, which effectively eliminates counter-party risks between its HKCC Participants. The HKCC guarantee does not cover an HKCC Participant's obligations to its clients. Investors should exercise due care and diligence when deciding through whom they will conduct business.
Both Hang Seng Index (HSI) and Hang Seng China Enterprises Index (HSCEI, H Shares) are key stock market benchmark indices in Hong Kong, widely used by investors to gauge their investment performances. The HSI is the key benchmark representing the performance of the Hong Kong stock market. The HSCEI tracks the performances of Mainland Chinese companies listed in Hong Kong, including H shares, Red-chips and private enterprises. Both indices are free-float adjusted market capitalisation weighted, with a 10-per cent-cap on the weighting of individual constituent securities. Both indices are compiled and calculated by Hang Seng Indexes Company Limited (HSIL).
To supplement the existing monthly index options, HKEX introduced the weekly index options contracts on HSI and HSCEI aims to provide risk management tools for investors to manage their short term risks on the exposure of HSI and HSCEI positions. Weekly index options are similar to the monthly index options except that they expire on the last business day of every week instead of the second last business day of the month.
Advantages
- Cost Effective
Trading or hedging against short-term market events with relatively low option premium. - Yield Enhancement
Employing short options strategies to capture option premium by taking advantage of the rapid time decay of its premium. - Option Risk Management
Managing the risks of options portfolio (delta, gamma and vega, etc) more effectively.
Growing BRICS Markets
BRICS (Brazil, Russia, India, China and South Africa) countries have become vital sources of growth in the global economy. From 2000 to 2010, the GDP growth of BRICS countries significantly outperformed the rest of the world.
BRICS Exchanges Alliance
HKEx, BM&FBOVESPA S.A. – Bolsa de Valores, Mercadorias e Futuros (BVMF) from Brazil, Open Joint Stock Company MICEX-RTS (MICEX-RTS) from Russia, BSE Ltd. (BSE) from India, and JSE Ltd. (JSE) from South Africa formed an exchange alliance in 2012, cementing closer cooperation among BRICS exchanges. The alliance enables members to expand their product offerings beyond their home markets and gives investors exposure and easier access to the dynamic and emerging BRICS economies.
BRICS Exchanges’ Benchmark Index Futures at HKEx
The listing of benchmark equity index derivatives on the boards of each of the alliance members marks the first phase of cooperation. The introduction of BRICS Exchanges’ benchmark index futures to HKEx’s marketplace will diversify HKEx’s product offerings, giving investors further access to emerging BRICS markets. Under the alliance, the following benchmark equity index futures will be listed on the Hong Kong Futures Exchange Ltd (HKFE), a wholly-owned subsidiary of HKEx:
- Brazil’s IBOVESPA futures
- Russia’s MICEX Index futures
- India’s Sensex Index futures; and
- South Africa’s FTSE/JSE Top40 futures
HKEx’s Stock Index Futures on BRICS Markets
HKEx’s stock index futures on BRICS benchmark indices are contracts listed and traded on HKFE. They are cash settled futures contracts traded in HKD; the trading hours and holiday schedule follow HKFE’s existing market practice. The contract design enables convergence with home market contracts in terms of last trading day and final settlement price to facilitate hedging and arbitrage.
The trading opportunities with BRICS Exchanges’ benchmark index futures contracts at HKEx are as follows:
- Easy to Gain Exposure to BRICS Markets Asian investors can easily gain exposure to the BRICS markets using HKD in an Asian time zone.
- Effective Hedging Tool Investors can manage their risk exposure in BRICS market related products (such as stock portfolios, ETFs, investment funds and structured products).
- Cross-market Arbitrage Opportunities Traders may explore cross market arbitrage opportunities between HKEx and their home markets.
- High Cost-effectiveness HKEx’s futures contracts are cost-effective and leveraged tools for investors.
- Low Counterparty Risk
Counterparty risk can be reduced by the HKFE Clearing Corporation Limited, an HKEx subsidiary which acts as a central counterparty to every trade.
Quick links to BRICS Exchanges
Brazil
The Underlying Exchange: B3
Index Information: IBOVESPA
Russia
The Underlying Exchange: MICEX-RTS
Index Information: MICEX
India
The Underlying Exchange: BSE
Index Information: SENSEX
South Africa
The Underlying Exchange: Johannesburg Stock Exchange
Index Information: FTSE/JSE Top40 Index
The CES China 120 Index, or CES 120, is the first index in the Cross Border Index Series introduced by China Exchanges Services Company Limited. The index covers a wide spectrum of China exposure by combining stocks listed in Hong Kong, Shanghai and Shenzhen in a single index. With broad coverage to capture the investment opportunities created by exposure to a comprehensive China investment universe, the CES 120 is an ideal benchmark and basis for futures, ETFs and other products.
The latest list of constituent stocks and reserve list are available on the website of China Exchanges Services Company Limited.
The latest list of constituent stocks and reserve list 。
Advantages
- Only futures contract with comprehensive China stock exposure The CES China 120 index futures contract is the only futures contract based on an underlying index that tracks both China’s A-shares and China stocks listed in Hong Kong. It is designed to provide investors with a convenient and cost efficient tool to simultaneously gain exposure to the China and Hong Kong stock markets.
- Serve as an effective hedging risk management tool It also can serve as an effective risk management tool for institutions to hedge their China stock positions and as the primary tool by Exchange Traded Fund (ETF) market makers seeking to hedge their positions in China-related ETFs.
- High correlation with onshore CSI 300 futures as well as FTSE China A50 futures and China share ETFs listed offshore Market makers, Commodity Trading Advisors, relative value managers and other market participants can actively manage multiple arbitrage opportunities between A-share baskets, ETFs, futures listed in Mainland China and offshore and other instruments.
- HKD denominated CES 120 futures are traded in Hong Kong dollars (HKD) for easy access by a broad spectrum of retail and institutional investors globally.
- Liquidity Provider programme Liquidity Providers will provide continuous two way prices to facilitate trading and price discovery.
Sector Index futures are low cost and capital efficient product for investors capture sector specific trading opportunities and manage their investment risk exposure more precisely.
HKEX’s sector index futures market covers seven major business sectors listed on the SEHK, including:
- CES Gaming Top 10 Index (CESGI0)
- Hang Seng Mainland Oil & Gas Index (HSMOGI)
- Hang Seng Mainland Banks Index (HSMBI)
- Hang Seng Mainland Healthcare Index (HSMHI)
- Hang Seng Mainland Properties Index (HSMPI)
- Hang Seng IT Hardware Index (HSITHI)
- Hang Seng Software & Services Index (HSSSI)
Advantages
- Constituents are selected from pure business segment to reflect their particular business and regulatory environments
- Constituents are industry leaders limited to the top 10 and subject to liquidity screening
- Weighting of each constituent is limited to 15 percent to avoid over-concentration
- Responsive to sectorial news and policy changes
- Diversify firm-specific risks
- High leverage and capital efficient
- No stamp duty and other financing costs
- Short sellable without stock borrowing
- Long / short strategies made possible: market vs sector, sector vs sector and sector vs single stock futures
China is the fastest growing bond market in the world and is the third largest after the United States and Japan. International participation in China’s bond market continues to increase, driven by the further opening up of China interbank bond market, broadening international acceptance of the RMB, inclusions in the emerging markets bond indices and yield differential compared to developed markets.
HKEX’s 5-Year China Ministry of Finance Treasury Bond (MOF T-Bond) Futures contract is the world’s first onshore interest rates product accessible to offshore players. It is an efficient, transparent and easy-to-access tool to manage against China interest rate risk exposure.
Advantages
- First Chinese government bond futures on an off shore exchange
- Tool to manage RMB interest rate risk
- Transparency of exchange trading
- Cost benefits of central clearing