Hong Kong Exchanges and Clearing Limited (“HKEX”) has released a consultation paper which details its internal review of its three clearing houses’ risk management measures, with particular focus on the stress testing methodologies and the adequacy of clearing houses’ financial resources when acting as central counterparties. The major proposals of the paper are to: (i) revise certain price movement assumptions in stress testing; (ii) revise counterparty default assumptions in stress testing; and (iii) introduce a standard margin system and a Dynamic Guarantee Fund in the cash market at The Hong Kong Securities Clearing Company Limited.