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

The Hong Kong Monetary Authority (HKMA) announced today (Wednesday) that it has re-appointed the Standard Chartered Bank (Hong Kong) Limited (SCBHK) as the Settlement Institution for the Euro clearing system in Hong Kong for a second five-year period.

SCBHK was appointed as the Settlement Institution for the Euro clearing system for a period of five years from March 2003 when the system was launched. The Euro clearing 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 and US dollar clearing systems in Hong Kong and with securities settlement systems, the Euro clearing system provides payment-versus-payment (PvP) settlement for 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 clearing 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 the five years commencing March 2008 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 second quarter in 2007, the Euro clearing system settled a monthly average of 3,152 transactions, and had an average monthly turnover of EUR 27 billion. Currently, the Euro clearing system has 28 Direct Participants and 21 Indirect CHATS Users.

For further enquiries, please contact:

Hong Kong Monetary Authority
Thomas Chan, Senior Manager (Press), at 2878 1480 or

The Standard Chartered Bank (Hong Kong) Limited
Ms Doris Fan, Manager, Media Relations, at 2820 3824

Hong Kong Monetary Authority
The Standard Chartered Bank (Hong Kong) Limited
12 September 2007