Clearstream in Luxmbourg is to establish a direct link with the central moneymarkets unit of the Hong Kong Monetary Authority, enabling Asian investors to clear, settle and hold international securities via their CMU accounts.
Scheduled to go live in January 2003, the new link will significantly improve settlement efficiency, say the partners, enabling Asian investors to trade international securities in a secure and robustly designed environment.
Clearstream's link comes five months after rival European depository Euroclear announced its intention to open an identical electronic window for Asian debt securities.
In 1994, an indirect one-way link was established from Europe to the CMU, enabling Clearstream and Euroclear customers to clear and settle debt securities lodged with the CMU.
Joseph Yam, chief executive of the HKMA, says: "This new link between CMU and Clearstream is an important addition to Hong Kong's cross-border settlement infrastructure. Hong Kong will be better placed to serve as the regional hub for the trading and settlement of international securities."