HKMA re-appoints SCBHK as Settlement Institution for the Euro RTGS system in Hong Kong

Hong Kong (HKSAR) - The following is issued on behalf of the Hong Kong Monetary Authority:

The Hong Kong Monetary Authority (HKMA) announced today (August 17) that it has re-appointed the Standard Chartered Bank (Hong Kong) Limited (SCBHK) as the Settlement Institution for the Euro Real Time Gross Settlement (RTGS) system in Hong Kong for a third five-year period.

SCBHK was first appointed as the Settlement Institution for the Euro RTGS system for a period of five years from March 2003 when the system was launched.It was subsequently re-appointed as the Settlement Institution for another five years from March 2008.The Euro RTGS 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, US dollar and renminbi RTGS systems and with securities settlement systems in Hong Kong, the Euro RTGS system provides payment-versus-payment (PvP) settlement for multi-currency 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 Euro RTGS system has been an integral part of Hong Kong's multi-currency and multi-dimensional clearing and settlement platform.The re-appointment of SCBHK as the Settlement Institution for another five years commencing March 2013 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 first half of 2012, the Euro RTGS system settled 423 transactions a day on average, and had an average daily turnover value of EUR605 million.In mid-2012, the Euro RTGS system had 33 direct participants and 19 Indirect CHATS Users.Among the Indirect CHATS Users, 11 were banks domiciled outside Hong Kong.

Source: HKSAR Government

Published on: 2012-08-17

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