John O'Neill

HKEX is pleased to be launching a fund repository on its Integrated Fund Platform (IFP), enhancing transparency for SFC-authorised funds and supporting the long-term growth of Hong Kong’s asset management industry.   HKEX Co-Head of Markets, Glenda So, said: “By providing easier access to fund information, the Fund Repository will help investors make informed fund investment decisions and enable market participants to serve their clients more effectively. HKEX is committed to facilitating the development of an efficient, diverse and vibrant fund distribution ecosystem, bolstering Hong Kong’s position as a global wealth management hub.”   For more information, please visit the IFP Fund Repository: https://ifp.hkex.com.hk/

70

HKEX To Develop Orion Derivatives Platform, Providing Best-in-Class Trading, Clearing and Risk Management Solutions for Global Clients On April 18, Hong Kong Exchanges and Clearing Limited (HKEX) announced the development of the Orion Derivatives Platform (ODP), to help differentiate the Group’s derivatives offerings and elevate its competitiveness in the global derivatives marketplace. · HKEX is launching the development of a proprietary derivatives platform to address rapidly evolving client needs · New platform will give HKEX capability to offer near 24-hour derivatives trading, introduce new products and provide enhanced efficiency, elevating Group’s competitiveness as a global exchange · ODP platform development ongoing; system migration will be carried out in phases to ensure smooth transition; market rollout expected in 2028 HKEX Chief Executive Officer, Bonnie Y Chan, said: “Building future-ready technology platforms and operations is a key strategic priority for HKEX, as we help our markets and participants deliver long-term, sustainable growth and development. We are therefore pleased to announce plans to develop the ODP, representing our significant investment into the future of our markets. Derivatives are one of the fastest-growing segments of HKEX's diverse business, achieving record-breaking volumes in both 2023 and 2022. Developing an in-house platform that is adaptable, efficient, and scalable, would give us a unique competitive advantage in the global derivatives space. The launch of ODP will strengthen HKEX’s capability to support the needs of global investors, and cement Hong Kong’s leading position as Asia’s risk management centre and an international financial centre.” For the full content, please check this link 👇 https://lnkd.in/gjQ4qEAy

2

HKEX Confirms Plans to Reduce Tick Sizes in Securities Market Hong Kong Exchanges and Clearing Limited (HKEX) will proceed with its proposal to reduce minimum spreads of equities, REITs, and equity warrants in two phases. https://lnkd.in/dmzYUdu9

1

HKEX REACHES AGREEMENT WITH SSE AND SZSE TO EXPAND SCOPE OF ELIGIBLE ETFS UNDER STOCK CONNECT Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce on Friday that it has reached an agreement with Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) to expand the scope of eligible exchange-traded funds (ETFs) under Stock Connect. The eligibility criteria for ETFs for both Northbound and Southbound trading, including the assets under management requirement and the index weighting requirements, will be relaxed to support the continued development of the mutual market access programme. This expansion will further enrich investment options and enable Stock Connect investors to allocate assets in both Hong Kong and Mainland China markets in an efficient and cost-effective way. Further details of the expansion can be found in the circular published by HKEX today. The three exchanges will work closely on the business and technical preparations for the expansion, which is expected to take effect approximately three months from the date of this announcement. #ETF #StockConnect #HKEX #SSE #SZSE

2

🇭🇰🇹🇭 Our new collaborative effort on cross-border tokenization ▪ The Bank of Thailand (BOT) and the Hong Kong Monetary Authority (HKMA) have partnered to advance cross-border tokenization through "Project San" and "Project Ensemble" as part of proof-of-concept development. ▪ Under this collaboration, the HKMA and BOT will test a connection between distributed ledger technology (DLT) financial market infrastructures (FMIs) through Project Ensemble, alongside BOT’s Project San. ▪ Specifically, Project San aims to develop and test a prototype tokenization ecosystem. This includes a wholesale settlement engine, Ethereum Virtual Machine (EVM)-compatible ledgers to support tokenized private money and assets, and interoperability mechanisms. ▪ The name "San" (or "สาน" in Thai) holds multiple meanings, including linking interconnected elements and promoting coordination and harmony. In Chinese, "San" translates to "three," representing the third bilateral collaboration on Fintech projects between our organizations. ▪ We believe this partnership will significantly advance tokenization efforts within our financial sectors, both domestically and cross-border. By offering comprehensive insights into tokenization, this initiative considers the unique technical designs, business requirements, and regulatory frameworks of each jurisdiction.

67

5 Comments

The Hong Kong Monetary Authority (HKMA) has announced to consolidate the 3-tier banking system to a 2-tier banking system by merging Deposit-Taking Companies (DTC) into 2nd-tier institutions with Restricted License Banks (RLB)over a 5-year transition period.  For Restricted License Banks (RLB), the minimum deposit size is $64,000 (HKD 500,000), and minimum capital is $12.8 million (HKD 100 million). Read - https://lnkd.in/eYakFTwt follow Caproasia | Driving the future of Asia The Hong Kong Monetary Authority (HKMA) has announced to consolidate the 3-tier banking system to a 2-tier banking system by merging Deposit-Taking Companies (DTC) into 2nd-tier institutions with Restricted License Banks (RLB)over a 5-year transition period.  For Restricted License Banks (RLB), the minimum deposit size is $64,000 (HKD 500,000), and minimum capital is $12.8 million (HKD 100 million).  Eddie Yue, Chief Executive of the HKMA: “We are pleased to note the broad support of the respondents of the proposed simplification of the three-tier banking system into two-tier. We have carefully considered the suggestions received and adopted them as appropriate. The HKMA will provide guidance to the DTCs in their transition. Following the issuance of the consultation conclusions, the HKMA will work with the relevant parties to prepare the proposed legislative amendments to implement the proposal.” Hong Kong Monetary Authority (HKMA)

2

The Hong Kong Monetary Authority (HKMA) has announced a new operational resilience requirement mandating that all retail banks must be able to easily switch to a different credit reference agency (CRA) in the event of a service disruption at one CRA. https://lnkd.in/gBgsbGca

8

HSBC and Ant International have successfully completed HKD-denominated cross-bank blockchain test transactions within the Hong Kong Monetary Authority’s “Ensemble” sandbox. This collaboration marks a significant step in enhancing blockchain-based cross-border payment capabilities. #HSBC #Blockchain #CrossBankTransactions #HongKong

8

Hong Kong Monetary Authority (HKMA) issues public warning of 2 non-licensed overseas crypto firms using “bank” & “bank card” to describe their products or services, with the firms misleading consumers to believe they are licensed banks in Hong Kong. Read - https://lnkd.in/gNbi_BSK follow Caproasia | Driving the future of Asia The Hong Kong Monetary Authority (HKMA) has issued a public warning of 2 non-licensed overseas crypto firms using “bank” & “bank card” to describe their products or services, with the firms misleading consumers to believe they are licensed banks in Hong Kong.  HKMA (15/11/24): “The Hong Kong Monetary Authority (HKMA) wishes to remind members of the public to be cautious about certain overseas crypto firms, which are not licensed banks in Hong Kong, making representation in Hong Kong that they are banks or using the word “bank” in the descriptions of their products or services. Such acts may constitute a contravention of the Banking Ordinance.  It has come to the HKMA’s attention that at the activities hosted in Hong Kong by two overseas crypto firms which are not licensed banks in Hong Kong, one of the firms was reported to have made representation that it was a “bank”, while the other firm had described its card product offered on its website as “bank card”. The HKMA is concerned that such claims by these firms mislead consumers to believe they are licensed banks in Hong Kong and are under the HKMA’s supervision, and such products and services are provided by licensed banks in Hong Kong.   Under the Banking Ordinance, only licensed banks, restricted licence banks and deposit-taking companies (collectively known as authorized institutions) which are authorized by the HKMA can carry on banking business or deposit-taking business in Hong Kong. Other than licensed banks in Hong Kong, it is an offence for any person to use the word “bank” in the name or description under which the person carries on business, or makes any representation that the person is a bank or is carrying on banking business in Hong Kong (Note).  The HKMA wishes to remind members of the public that crypto firms which are not authorized institutions in Hong Kong are not supervised by the HKMA. Overseas crypto firms with names carrying the word “bank” or overseas “crypto banks” claiming to be licensed elsewhere are not necessarily licensed banks in Hong Kong. Also, products or services with names carrying the word “bank” are not necessarily provided by licensed banks in Hong Kong.   If there is any doubt, members of the public may refer to the register of authorized institutions on the HKMA’s website (https://lnkd.in/giCcDF_F), or call the HKMA’s Public Enquiry Service hotline (2878 8222).”

4

OTC CLEAR TO ACCEPT CHINA GOVERNMENT BONDS AS COLLATERAL FOR SWAP CONNECT Hong Kong Exchanges and Clearing Limited (HKEX) today (Tuesday) welcomed the announcement from the People’s Bank of China to allow China Government Bonds and Policy Financial Bonds, held by international investors through Bond Connect, as collateral for Northbound Swap Connect. HKEX's clearing subsidiary, OTC Clear, plans to start accepting these instruments as collateral for Swap Connect, with a targeted launch by the end of 2024. OTC Clear and will work closely with the Securities and Futures Commission and the Central Moneymarkets Unit of the Hong Kong Monetary Authority in preparation for this enhancement. More details will be announced in due course. This latest enhancement to Northbound Swap Connect will help improve capital efficiency of investors in the programme by offering them more non-cash collateral options. It will also further boost the attractiveness of holding onshore RMB bonds for international investors participating in Bond Connect. #interestrate #BondConnect #HKEX #OTCClear #RMB

1

The Hong Kong Monetary Authority (HKMA) is launching in mid-2024 Project Ensemble Architecture Community to support the development of the tokenisation market in Hong Kong, with the community comprising of HKMA, Hong Kong SFC(Securities & Futures Commission), BIS Innovation Hub Hong Kong Centre, CBDC Expert Group and 7 private sector members (Bank of China, Hang Seng Bank, HSBC, Standard Chartered, HashKey Group, Ant Digital Technologies & Microsoft). Read - https://lnkd.in/g_ebMvKk follow Caproasia | Driving the future of Asia The Hong Kong Monetary Authority (HKMA) is launching in mid-2024 Project Ensemble Architecture Community to support the development of the tokenisation market in Hong Kong, with the community comprising of HKMA, Hong Kong SFC(Securities & Futures Commission), BIS Innovation Hub Hong Kong Centre, CBDC Expert Group and 7 private sector members (Bank of China, Hang Seng Bank, HSBC, Standard Chartered, HashKey Group, Ant Digital Technologies, Microsoft) Announcement (7/5/24): “The Hong Kong Monetary Authority (HKMA) today (7 May) announced the establishment of the Project Ensemble Architecture Community (the Community) to join hands with the industry to shape standards and provide suggestions to support the development of Hong Kong’s tokenisation market.  The Community aims to develop a set of industry standards to support interoperability among wholesale CBDC (wCBDC), tokenised money and tokenised assets. It will make recommendations on specific topics, initially focusing on setting up a mechanism to support seamless interbank settlement of tokenised deposit through wCBDC for tokenised asset transactions. The Community will also assist in the design and implementation of the Project Ensemble Sandbox which is targeted to launch by around mid-2024 to facilitate further research and testing of tokenisation use cases. The Community comprises a diverse spectrum of industry representatives across multiple domains covering regulators, international organisations, academia, local and multinational banks, key players in the digital asset industry and technology companies. Initially, it consists of the HKMA, the Securities and Futures Commission, the BIS Innovation Hub Hong Kong Centre, the CBDC Expert Group, and seven members from the private sector, namely Bank of China (Hong Kong), Hang Seng Bank, HSBC, Standard Chartered Hong Kong, HashKey Group, Ant Digital Technologies and Microsoft Hong Kong. The formation of the Community is based on a range of careful considerations, including the members’ expertise in contributing to the development of the tokenisation market in Hong Kong, experience and competency in relevant fields and innovative capability ... ... Hong Kong Monetary Authority (HKMA)

1

In line with the Group of 20’s commitment to reform over-the-counter (OTC) derivatives markets, the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) issued a joint consultation paper on 22 March 2024 on the mandatory use of Unique Transaction Identifier and Unique Product Identifier, the reporting of Critical Data Elements and the adoption of the ISO 20022 standard. Having considered market feedback to the consultation, the two regulators published a joint consultation conclusions paper. The conclusions paper confirms that the UTI and UPI will become mandatory for reporting OTC derivatives transactions by 29 September 2025. It also addresses concerns about specific data fields and offers flexibility for reporting legacy trades, allowing re-reporting on a best-effort basis where retrieving historical data proves difficult. https://lnkd.in/giNKh32J https://lnkd.in/gw2wgzbC https://lnkd.in/gW3xdHYw #derivatives #iso20022 #payments #banking

15