CONNECT WITH US
Fintech

Fintech

HKEX T+1 plan puts brokers on notice for 2028

Fintech Global logo

Published on

Add as a preferred source on Google
HKEX T+1 plan puts brokers on notice for 2028

Hong Kong Exchanges and Clearing Limited (HKEX) has published the results of its consultation on accelerated settlement and confirmed that it aims to move the city’s cash market to a T+1 cycle in the second half of 2028, provided the market is ready and regulators approve.

The exchange received 109 non-duplicated submissions from brokers, custodians, investment managers, industry associations, technology providers, investors and other parties.

Most backed the move. They expect a shorter cycle to make the market more efficient, lower settlement risk, free up capital and help Hong Kong compete as an international financial centre.

Respondents also raised concerns that will shape the transition. These include the heavier operational workload of a shorter cycle, the need to have securities available and settlements prepared on time, better automation and settlement data quality, and coordinated preparation across the industry.

In response, HKEX will use a three-layer framework. The first layer covers changes to its own post-trade infrastructure and operating model. HKEX plans to lengthen Settlement Instruction processing windows, add free-of-payment settlement runs and issue risk reports earlier.

It will also allow real-time Settlement Instruction submission and status tracking through an Application Programme Interface (API), with real-time matching on the Orion Cash Platform (OCP).

The second layer involves new workflow tools. A Settlement Profile Repository and a Status Dashboard are intended to make settlement more visible, automate more of the process and improve Standing Settlement Instructions (SSI) data. HKEX will keep consulting stakeholders on trade allocation, confirmation matching, settlement instruction automation and other uses that could encourage wider take-up.


Source link
Related Topics:Fintech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.