GCC Consulting

Further information on the dual counter model eligible for market making in Hong Kong securities market

Hong Kong Securities Clearing Company (HKSCC) has announced the launch of the HKD-RMB Dual Counter Model in the first half of 2023 to make cross counter transfers of multi-counter securities more efficient and flexible. The Multi-counter Transfer Instruction (MCTI) process will undergo some changes, including an extension of the input and cancellation functions for Inter-counter Transfer/Conversion Instruction until 5:15 pm, and an extension of the batch file upload function time for MCTI until 4:30 pm. The Multi-counter eligible securities transfer fee of HK$5 per instruction will be abolished. CPs can apply for an exemption of buy-in if they have an outstanding short position in one counter but have enough securities or a long position in the other counter to settle the short position by T+2. The ICI function in CCASS will allow for free cross transfers between HKD and RMB counters of the same stocks within A/C 01 for settlement purposes. Designated Multi-counter Eligible Securities will be listed on Client Connect. CPs are reminded to review their internal controls to comply with client asset rules and prevent misappropriation of client assets.

resource: https://www.hkex.com.hk/-/media/HKEX-Market/Services/Circulars-and-Notices/Participant-and-Members-Circulars/HKSCC/2023/ce_HKSCC_SET_016_2023.pdf


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