Hong Kong Exchanges & Clearing Ltd. · HKEX:388
Hong Kong Exchanges & Clearing — Conference Presentation (April 2025)
27 slides from Hong Kong Exchanges & Clearing's conference presentation, April 2025
Slide 1: Enhancement of Settlement Arrangement for Multi-counter Eligible Securities
Enhancement of Settlement Arrangement for Multi-counter Eligible Securities – Briefing for Practice Sessions and Migration April 2025
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is for general informational purposes only and does not constitute an offer, solicitation, invitation or recommendation to subscribe for or purchase any securities or other products or to provide any investment advice of any kind. This presen
Slide 3: Agenda
Agenda 01 | Overview of the Enhancement 02 | Latest Timeline 03 | Launch Arrangements 04 | Connectivity Test 05 | Practice Session Arrangement 06 | Appendix 3
Slide 4: Overview of the Enhancement
01 | Overview of the Enhancement
Slide 5: Overview of the Enhancement
01 | Overview of the Enhancement Objectives: Enable the scalability of multi-counter trading by removing the need for manual input for inter-counter transfer instructions 1 Reflect all 1 Stock No post trade activities in realignment Fully code fungible Per More 1 security international scalable Stoc
Slide 6: Overview of the Enhancement (Cont'd)
01 | Overview of the Enhancement (Cont’d) Single Tranche Multiple Counter Approach (STMC Arrangement) Register of Member One security* Depository Holdings One security* Trading RMB counter USD counter HKD counter Securities Settlement Domain settlement counter^ Money Settlement RMB USD HKD Collatera
Slide 7: Latest Timeline
02 | Latest Timeline
Slide 8: Latest Timeline
02 | Latest Timeline Events Date Release information pack for practice sessions via web corner 9 May 2025 Registration for practice sessions via Client Connect Before 9 May 2025 Connectivity test 17 May 2025 (Sat) Practice session 1 24 May 2025 (Sat) (Mandatory for CPs that will clear and settle cro
Slide 9: Launch Arrangements
03 | Launch Arrangements
Slide 10: Launch Arrangements - Illustration of Migration Arrangement
03 | Launch Arrangements - Illustration of Migration Arrangement The dates provided are for illustrative purposes only; the actual dates are subject to regulatory approval. Before migration Migration After migration 27 June Last Friday before 28 June Migration weekend 30 June Launch Launch Display u
Slide 11: Launch Arrangements - Impact on Clearing Participants
03 | Launch Arrangements - Impact on Clearing Participants Current New Clearing and Settlement Domain Other Currency Arrangement Settlement Counter Arrangement • Unsettled CNS/IT/SI/ISI positions Counter • Buy-in arrangement 388 388 80388 • Stock Settlement Fee Holdings level 388 Depository and Nomi
Slide 12: Transition Arrangement - CNS Positions
03 | Transition Arrangement - CNS Positions Migration Reflect under original trading counter Reflect under domain settlement counter E-3 E-2 E-1 Effective date E+1 E+2 Remarks (E day) Trades conducted T-day T+1 T+2 (settled No impact on on E-3 under original those settled trading counter) trades Tra
Slide 13: Example of Transition Arrangement (For reference)
03 | Example of Transition Arrangement (For reference) Backup Migration Launch CNS Assumed the Business Launch is on 30 June 2025 27 Jun 28 Jun 30 Jun positions Participant A has below due/overdue CNS positions as of 27 June 2025 day-end (Friday) (Saturday) (Monday) Trade date Settlement Stock code
Slide 14: Example of Transition Arrangement (For reference)
03 | Example of Transition Arrangement (For reference) Backup Migration Launch 27 Jun 28 Jun 30 Jun (Friday) (Saturday) (Monday) Participant A has below holdings of Multi-counter Eligible Securities as of 27 June 2025 day-end. Holdings Stock code Holdings as of 27 June Holdings for 30 June 2025 day-
Slide 15: Change on Stock Settlement Fee
03 Change on Stock Settlement Fee Upon the launch of the Enhancement, HKSCC’s Stock Settlement Fee will also be updated: From To 1. Currency HKD Eligible currency of such Exchange Trade 2. Rate* 0.0020% 0.0042% 3. Boundaries* Min HK$2/ Max HK$100 Removed *Changes announced under ‘Settlement Fee Rest
Slide 16: Change on Stock Settlement Fee
03 Change on Stock Settlement Fee Assume 30 June is the first business date of the launch, the new rate will be applicable for all Exchange Trades executed on or after 30 June. FCS generated (on T+1) 30 June 2 July 3 July Trade execution (Friday) (Monday) (Tuesday) T = 27 June Old rate (Friday) T =
Slide 17: Connectivity Test
04 | Connectivity Test
Slide 18: Connectivity Test
04 | Connectivity Test Test connectivity to CCASS testing environment Connectivity Test – Weekend Activities (Saturday) 11:00 – 12:00 Objectives: Verify the connectivity on Saturday by mimicking the actions to be performed during post release verification. ✓Login to CCASS testing environment ✓Downlo
Slide 19: Connectivity Test (Cont'd)
04 | Connectivity Test (Cont’d) Ad-hoc reports (report date = 29 March 2025) to be available for download: # Report ID Report Name Report File Data File 1 CSEOP01 Next Settlement Day Due/Overdue Position Report 2 CSESB01 Daily Stock Balance Report 3 CSESM01 Statement of Stock movement (By St
Slide 20: Practice Session Arrangement
05 | Practice Session Arrangement
Slide 21: Practice Session Arrangement
05 | Practice Session Arrangement Test migration and day-to-day post trade operations under the STMC arrangement Practice Session – Weekend Activities (Saturday) Objectives: Simulate migration and perform the post trade activities in CCASS and/or VaR Platform under the new arrangement. PS1 Mandatory
Slide 22: Practice Session Arrangement (Cont'd)
05 | Practice Session Arrangement (Cont’d) Item Description Objectives • To provide an opportunity for CPs to simulate migration and verify their operations, including their back-office system (if applicable) are ready for the launch of STMC Schedule and time • 24 May 2025 • It is expected to be run
Slide 23: Practice Session Arrangement (Cont'd)
05 | Practice Session Arrangement (Cont’d) Normal Settlement Day (First business day after STMC migration) CCASS date = 31 March 2025 Practice Session Time 11:00 12:00 13:00 14:00 15:00 16:00 21:00 22:00 Online End of Practice 1st BSR 2nd BSR 3rd BSR 4th BSR ready Session (13:00) (14:00) (14:45) (15
Slide 24: Appendix
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Slide 25: Preparation Checklist
06 Preparation Checklist Tasks Dates April May Register for connectivity test and practice sessions via Registration 23 9 Client Connect 2025 2025 May Perform connectivity test Connectivity test 17 (optional, but highly recommended) 2025 May Join PS1, mandatory for CPs that will clear and settle PS1
Slide 26: Participant Readiness (for reference)
06 | Participant Readiness (for reference) Technical Readiness ✓ Understand the migration approach – big bang approach and all Multi-counter Eligible Securities will be included ✓ Complete internal system development, if any, before joining the practice session ✓ Start scheduling the resources to jo
Slide 27: Questions?
Questions? For further information, please go to
Hong Kong Exchanges and Clearing — Conference Presentation (April 2025) on 6ix