Clearing and Settlement

To enhance efficiency and mitigate settlement risk, the CMU provides:

• Real-time Delivery-versus-Payment (DvP) capability for CMU securities denominated in multi-currencies
• Cross-border DvP settlement via the linkages with regional central securities depositories (CSDs) and international central securities depositories (ICSDs)

The CMU has a seamless interface with the Hong Kong dollar, US dollar, Euro and Renminbi RTGS systems (i.e. HKD CHATS, USD CHATS, EUR CHATS and RMB CHATS) in Hong Kong to facilitate DvP settlement. Securities are settled in real-time (BIS Model 1) mode.

The DvP settlement model enables efficiency and accuracy, and mitigates settlement risks. Besides, buyers and sellers of CMU debt securities will receive securities and cash respectively on a real-time basis on the settlement date.

Hong Kong dollar (HKD), US dollar (USD), Euro (EUR), and Renminbi (CNY) are the settlement currencies on the RTGS systems in Hong Kong. The CMU system also supports cross-currency settlement where the settlement currency is different from the denomination currency of the securities.

Settlement Finality

The settlement of transactions made through the CMU system is final and irrevocable. This finality is protected from insolvency laws by the Payment Systems and Stored Value Facilities Ordinance (PSSVFO).

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