On Apr. 23, 2025, HKEX issued circulars regarding registration for practice session for enhancement of settlement arrangement for multi-counter eligible securities in CCASS.
Enhancement is tentatively scheduled to take effect in Jun. 2025, subject to approval.
Optional practice session for exchange participants (EPs) scheduled for May 24, 2025.
3 readiness checks are scheduled: connectivity test on May 17, 2025 (optional), practice session 1 on May 24, 2025, mandatory for clearing participants (CPs) clearing cross-counter trades, practice session 2 on Jun. 7, 2025 (for CPs that fail session 1).
EPs who wish to participate must complete, submit registration form by May 21, 2025.
CPs wish to register test and practice sessions must be completed by May 9, 2025.
EPs and clearing participants are advised to review and adjust their internal systems and operational setups to ensure a smooth transition and avoid settlement failures.
HKSCC has further updated the FAQ to provide more detailed information regarding the enhancement, particularly the migration arrangements outlined in part 6 of FAQ.
CPs are strongly encouraged to review revised FAQ and study the migration sample available on web corner to adequately prepare for migration scheduled for Jun. 2025.
On Jan. 15, HKEX enhanced settlement for multi-counter securities.
HKEX introduced enhancement to settlement arrangement for multi-counter eligible securities in CCASS, known as the single tranche multiple countersarrangement.
Follows HKEX May 2024 made enhancements to settlement arrangements, #213928.
Enhancement
Streamline post-trade activities by combining them under domain settlement counter.
Domain settlement counter means the HKD counter and reflects the stock code of the HKD counter, or another currency counter of a multi-counter eligible security.
HK Securities Clearing Company (HKSCC) will automatically convert shareholdings from other currency counters to the domain settlement counter on the effective date.
Investor participants (IPs) do not need to submit multi-counter transfer instructions.
IPs must use CCASS stock code of the domain settlement counter in their instructions, as any use of stock codes from other currency counters will result in rejection.
Supplemental Information
Single ISIN will be assigned to all trading counters of same multi-counter eligible security, replacing current practice of separate ISINs for different currencies.
HKSCC is working on revising ISIN guidelines for HK-specific assignment practices.
Revised guides will remove exception of having separate ISINs for different currency.
Clearing participants (CP) must input CCASS stock code or ISIN of domain settlement counter; instructions with other currency counters' codes or ISINs will be rejected.
Effectiveness
The enhancement is expected to take effect in Jun. 2025.
Mar. 2025 Migration Preparation
On Mar. 21, 2025, HKEX published a set of sample migration reports to web corner and encouraged CPs to study those reports to prepare for migration of the enhancement.
HKEX will hold participant webinars on Apr. 23, 25, and 28 to share information re the implementation of the enhancement, including the rollout approach and timeline.
CPs should nominate no more than 2 representatives to attend; registration required.
HKEX advised CPs to review their funding arrangement, in particular, their adequacy of funding and banking facilities for non-Hong Kong dollars (i.e., RMB and USD).
CPs shall consult the internal IT support units/system vendors for the implementation.
Apr. 2025 Practice Session and Revised FAQ
On Apr. 23, 2025, HKEX issued circulars regarding registration for practice session for enhancement of settlement arrangement for multi-counter eligible securities in CCASS.
Enhancement is tentatively scheduled to take effect in Jun. 2025, subject to approval.
Optional practice session for exchange participants (EPs) scheduled for May 24, 2025.
3 readiness checks are scheduled: connectivity test on May 17, 2025 (optional), practice session 1 on May 24, 2025, mandatory for clearing participants (CPs) clearing cross-counter trades, practice session 2 on Jun. 7, 2025 (for CPs that fail session 1).
EPs who wish to participate must complete, submit registration form by May 21, 2025.
CPs wish to register test and practice sessions must be completed by May 9, 2025.
EPs and clearing participants are advised to review and adjust their internal systems and operational setups to ensure a smooth transition and avoid settlement failures.
HKSCC has further updated the FAQ to provide more detailed information regarding the enhancement, particularly the migration arrangements outlined in part 6 of FAQ.
CPs are strongly encouraged to review revised FAQ and study the migration sample available on web corner to adequately prepare for migration scheduled for Jun. 2025.
