HKMA re-appoints HSBC as Settlement Institution for the US dollar clearing system in Hong Kong

Press Releases

25 Apr 2005

HKMA re-appoints HSBC as Settlement Institution for the US dollar clearing system in Hong Kong

The Hong Kong Monetary Authority (HKMA) announced today (Monday) that it has re-appointed The Hongkong and Shanghai Banking Corporation Limited (HSBC) as Settlement Institution for the US dollar clearing system in Hong Kong for a second five-year period.

HSBC was appointed as the Settlement Institution for the US dollar clearing system for a period of five years from August 2000 when the system was launched. The US dollar clearing system, which facilitates the efficient real-time settlement of US dollar transactions during Asian business hours, has been operating smoothly and effectively, attracting an enthusiastic response from local and overseas banks. Through establishing linkages with the Hong Kong dollar and euro clearing systems in Hong Kong and with securities settlement systems, the US dollar clearing system provides payment-versus-payment (PvP) settlement for foreign exchange transactions involving the US dollars and delivery-versus-payment (DvP) settlement of US dollar denominated securities. Both arrangements help increase settlement efficiency and eliminate settlement risk. The re-appointment of HSBC as the Settlement Institution for the five years commencing August 2005 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 quarter in 2005 the US dollar clearing system settled a daily average of 5,366 transactions, and had an average daily turnover of US$7 billion. Of this, the daily PvP turnover amounted to 65 transactions or US$2.7 billion. Currently, the US dollar clearing system has 69 direct participants and 164 indirect participants. Among the indirect participants, 119 are banks domiciled outside Hong Kong.

For further enquiries, please contact:

Hong Kong Monetary Authority
Jasmin Fung, Manager (Press), at 2878 8246 or
Kevin Ip, Manager (Press), at 2878 1687

The Hongkong and Shanghai Banking Corporation Limited
Ms Vinh Tran, Manager External Relations, HSBC, at 2822 4924

Hong Kong Monetary Authority
The Hongkong and Shanghai Banking Corporation Limited

25 April 2005

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Last revision date : 25 April 2005