On February 11, 2026, the Securities and Futures Commission ("SFC") of Hong Kong published a circular allowing licensed corporations to provide virtual asset ("VA") dealing services under an omnibus account arrangement. This includes offering financing for VA dealing, access to shared order books, and safeguarding client VAs during withdrawals.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On February 11, 2026, the Securities and Futures Commission ("SFC") published a circular permitting licensed corporations to offer virtual asset ("VA") dealing services under an omnibus account arrangement.
The circular introduces flexibility for VA brokers to provide financing for VA dealing, access to shared order books, and protection of client VAs in withdrawal scenarios.
Historically, licensed corporations were restricted from offering financial accommodation for VA acquisition, but the Pillar P of the ASPIRe roadmap aims to integrate margin trading by permitting VA brokers to extend credit to margin clients.
Eligibility for VA financing is contingent on clients with robust credit profiles and adequate collateral. Risk assessment should consider factors such as asset price volatility, historical VA performance, market liquidity, sector risks, and individual VA risks.
For VA collateral used as credit mitigation, bitcoin and ether are permissible with a prudent haircut of at least 60%. Brokers must employ risk assessment methodologies, real-time monitoring, and contingency planning for operational disruption.
The Securities Margin Financing Guidelines (SMF Guidelines) remain applicable with extended principles to VA financing and VA collateral. Collateral concentration controls apply to both securities and VA collateral, necessitating maintenance of existing credit controls and setting prudent margin call triggers.
Terms and Conditions will be updated to reflect these changes, and a consultation on capital requirements for VA-related activities is forthcoming. Currently, VA collateral is subject to a 100% haircut under the Securities and Futures (Financial Resources) Rules.
VA brokers may facilitate agency trading on shared order books after thorough risk assessments, with clear communication of additional risks and adequate disclosures to clients. Retail clients can access shared order books only upon client election and understanding of associated risks.
Brokers must implement robust measures to safeguard client VAs against theft, fraud, and unauthorized withdrawals. Collaboration with Virtual Asset Trading Platform ("VATP") operators is essential to enhance withdrawal detection and security.
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