HKMA Reappoints SCBHK To Settle Euro Clearing In Hong Kong
The Hong Kong Monetary Authority (HKMA) announced on September 12 that it has
re-appointed the Standard Chartered Bank (Hong Kong) Limited (SCBHK) as the Settlement
Institution for the Euro clearing system in Hong Kong for a second five-year period.
SCBHK was appointed as the Settlement Institution for the Euro clearing system
for a period of five years from March 2003 when the system was launched. According
to the HKMA, the Euro clearing system, which facilitates the efficient real-time
settlement of Euro transactions during Asian business hours, has been operating
smoothly and effectively. Through establishing linkages with the Hong Kong dollar and US dollar clearing
systems in Hong Kong and with securities settlement systems, the Euro clearing
system provides payment-versus-payment (PvP) settlement for foreign exchange
transactions involving Euro and delivery-versus-payment (DvP) settlement of
Euro denominated securities. Both arrangements help increase settlement efficiency
and eliminate settlement risk. The HKMA went on to add that the Euro clearing system has been an integral part of Hong
Kong’s multi-currency and multi-dimensional clearing and settlement platform,
and the re-appointment of SCBHK as the Settlement Institution for the five years
commencing March 2008 takes account of the bank’s robust track record,
and its commitment to the continued development of the financial infrastructure
in Hong Kong. In the second quarter of 2007, the Euro clearing system settled a monthly average
of 3,152 transactions, and had an average monthly turnover of EUR27 billion
(US$37.5 billion). Currently, the Euro clearing system has 28 Direct Participants
and 21 Indirect CHATS Users. .
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