Mandate of the HKMA to Oversee Financial Market Infrastructures

Policy Objectives

The effective functioning of the FMIs is essential to the monetary and financial stability of Hong Kong and to the functioning of Hong Kong as an international financial centre. The policy objectives of the HKMA in overseeing the FMIs in Hong Kong are to promote the general safety and efficiency of the FMIs, to limit systemic risk, and to foster transparency. The aim of the HKMA’s oversight work is to make the FMIs more resilient to financial crises and to protect the monetary and financial systems in Hong Kong from possible destabilising effects arising from disruption to the functioning of the FMIs.

Systems Designated under the Payment Systems and Stored Value Facilities Ordinance

The Clearing and Settlement Systems Ordinance (CSSO), which came into effect on 4 November 2004, establishes a statutory regime for the Monetary Authority (MA) to designate and oversee clearing and settlement systems (CSSs) that are material to the monetary or financial stability of Hong Kong or to the functioning of Hong Kong as an international financial centre. The HKMA is therefore empowered to designate and oversee CSSs on an ongoing basis to ensure their compliance with the CSSO.

On 13 November 2015, the CSSO was amended and retitled as the Payment Systems and Stored Value Facilities Ordinance (Ordinance) to introduce a regulatory regime for stored value facilities and retail payment systems in addition to the existing oversight framework for CSSs under the pre-amended CSSO. As far as the designated CSSs are concerned, all designations, certificates of finality and exemptions granted under the pre-amended CSSO continue to have effect under the Ordinance.

Systems Owned and Operated by the HKMA

One of the policy objectives of the HKMA is to help maintain Hong Kong’s status as an international financial centre, including the maintenance and development of Hong Kong’s financial infrastructures. The HKMA plays a key role in developing a safe and efficient financial infrastructure in Hong Kong, which is essential to the stability and integrity of the monetary and financial systems. Among the financial infrastructures, the Hong Kong Dollar Clearing House Automated Transfer System (HKD CHATS - Hong Kong dollar RTGS system in Hong Kong), the Central Moneymarkets Unit (CMU - the debt securities settlement system in Hong Kong) , the Over-the-Counter Derivatives Trade Repository of the HKMA (HKTR) and the Faster Payment System (FPS) are owned and operated by the HKMA. The HKMA therefore has a duty to ensure these systems are operated in a safe and efficient manner and apply appropriate oversight standards.

Last revision date : 26 August 2019