Computershare (ASX:CPU.ax), a global market leader in transfer agency and share registration today announced that it is extending its highly-regarded web based xSettle(tm) service to support dual listed securities in the Hong Kong market.
Introduced in 2006, xSettle helps market participants including brokers, banks and institutions to move securities between key capital markets efficiently; a process that is critical to support inter-market trading. Since 2006, xSettle has processed over 125,000 cross border transactions.
The launch means that for the first time in Hong Kong, through a settlement agent arrangement, Computershare can extend its cross border service to interact with accounts in the local depository, CCASS, mirroring the service offered in other global markets. Initially, xSettle will be deployed to move securities between Hong Kong and London, commencing with UK companies that have dual listings in Hong Kong. Other markets will be phased in according to demand.
Paul Conn, President of Computershare Global Capital Markets said "We continue to see strong interest in listing in Hong Kong from a diverse range of international issuers and their advisors. Introducing xSettle complements our global registry service platform and supports our leading position in the Hong Kong market. Given the volume of cross border business in and out of Hong Kong, this launch makes total sense."
xSettle will streamline settlement processes between market participants in Hong Kong and London, removing the need to rely on paper-based physical settlements in the Hong Kong market. Market participants will be able to settle cross border transactions more conveniently and cost effectively.
The deployment of xSettle; already used to move securities between Australia, Jersey, UK, Ireland, US, Canada and South Africa; will enable Computershare to reduce the cost of rapidly transferring securities into and out of Hong Kong by up to 25%.
The first security to be introduced to the service between Hong Kong and London will be HSBC Holdings plc, effective from Monday 24th January. Other companies' securities are expected to be added in the near future.