Hong Kong And Malaysia Launch Cross-Border Payment System
Bank Negara Malaysia and the Hong Kong Monetary Authority (HKMA) announced on Monday
the implementation of a cross-border delivery-versus-payment (DvP) link between
Hong Kong’s US dollar real time gross settlement (RTGS) system.
The DvP link will help eliminate settlement risk for US dollar bonds issued
and traded in Malaysia, by ensuring simultaneous delivery of US dollars in Hong
Kong and US dollar bonds in Malaysia. The DvP settlement services provide the necessary settlement infrastructure
to support potential issuance of US dollar bonds in Malaysia, as part of the
initiatives to promote Malaysia as an Islamic financial centre and Hong Kong
as an international financial centre. The new link builds on the success of the payment-versus-payment (PvP) link
between Hong Kong's US dollar RTGS system and Malaysia's Ringgit RTGS system
that was established in November 2006. Similar to the PvP link, the DvP link is operated in Malaysia by Bank Negara
Malaysia, and in Hong Kong by Hong Kong Interbank Clearing Limited, which operates
the interbank clearing systems in Hong Kong, and is jointly and equally owned
by the HKMA and the Hong Kong Association of Banks. .
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