12 December 2017
visit www.aciworldwide.com

HKMA to clear US treasuries during Hong Kong hours

29 July 2002  |  895 views  |  0 HKMA to clear US treasuries during Hong Kong hours

The Hong Kong Monetary Authority (HKMA) is to introduce a new clearing, settlement and custodian service for US treasuries, and has appointed Citibank as custodian, on behalf of HKMA's Central Moneymarkets Unit.

The new service, scheduled to go live in the fourth quarter of 2002, will enable investors in Hong Kong and other parts of Asia to settle US treasuries during Hong Kong hours through the CMU.

As custodian, Citibank will provide an indirect link to the Fedwire Book-Entry Securities Transfer System, a clearing and settlement system for US treasuries operated by the Federal Reserve Bank of New York in the United States. Citibank will also be responsible for providing settlement, income collection, redemption and tax-related services to the CMU.

With the existing system interface between the CMU and the US dollar clearing system in Hong Kong, investors can clear and settle US treasuries on a real-time delivery versus payment (DvP) basis during Hong Kong hours through the accounts maintained by CMU members with the CMU. This arrangement will bring forward the DvP settlement of the US treasuries from New York to Hong Kong time and shorten the settlement cycle, say the companies.

Tony Latter, deputy chief executive of the HKMA, says: "This new service from the CMU is part of the on-going effort of the HKMA to provide a robust, efficient and up-to-date financial infrastructure to serve the investor community in Asia. Hopefully this new service will attract more business to Hong Kong and strengthen its role in securities settlement in the region."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Citibank to act as CLS concentrator for WestLB

Citibank to act as CLS concentrator for WestLB

11 July 2002  |  3581 views  |  0 comments
HKEx seeks comment on third-party clearing proposals

HKEx seeks comment on third-party clearing proposals

10 July 2002  |  3208 views  |  0 comments
HKEx launches investigation into UPS failure

HKEx launches investigation into UPS failure

30 May 2002  |  3094 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
visit www.aciworldwide.comvisit http://info.nice.comvisit www.response.ncr.com

Who is commenting?

Top topics

Most viewed Most shared
Saxo Bank's 'Outrageous Prediction': Bitcoin to peak at $60k next year before spectacular crashSaxo Bank's 'Outrageous Prediction': Bitco...
11781 views comments | 7 tweets | 7 linkedin
Deutsche Bank paper hails 'huge' blockchain potentialDeutsche Bank paper hails 'huge' blockchai...
8682 views comments | 15 tweets | 21 linkedin
Santander UK poaches Barclays innovation chief Michael HarteSantander UK poaches Barclays innovation c...
7071 views comments | 8 tweets | 17 linkedin
Alior Bank to use Open API platform and accelerator to create fintech marketplaceAlior Bank to use Open API platform and ac...
6813 views comments | 20 tweets | 11 linkedin
PSD2: Laying the regulatory foundation for a new age in paymentsPSD2: Laying the regulatory foundation for...
6727 views comments | 17 tweets | 35 linkedin

Featured job

Find your next job