Hong Kong: Dual Counter HKD-RMB Model
Clearstream Banking1 informs clients that effective
19 June 2023
they can settle and safekeep the newly introduced RMB counters published on the Hong Kong Exchange (HKEX) website under the HKD (Hong Kong Dollar)-RMB (Chinese Renminbi) Dual Counter Model.
As a background, the HKEX announced the new HKD-RMB Dual Counter Model on 13 December 2022 as well as an inaugural Dual Counter Market Making Program to further support RMB development in the Hong Kong securities market. The Dual Counter Model went live on 19 June 2023.
Clearstream Banking informs clients that they can participate in Dual Counter securities, based on the following conditions:
- HKD and RMB counters must be issued with separate ISIN codes (that is, one ISIN for the HKD counter and a different ISIN for the RMB counter).
- The Dual Counter conversion service will not be available until further notice.
- Clients will not be able to safekeep and settle securities with an RMB counter if both the HKD and RMB counters are issued with a single (same) ISIN code.
Impact on clients
- Settlement instruction deadlines and instruction formats remain the same as per the current setup for the existing Hong Kong equities.
- Clients can leverage their current Hong Kong account setup to settle and safekeep RMB securities under the Dual Counter Model.
- RMB counter securities will not be Bridge eligible, meaning that clients cannot settle RMB counter securities with a Euroclear counterparty. Only internal and domestic instructions are allowed.
- Clearstream Banking will settle the HKD counter by default in the scenario whereby only one ISIN is issued with two counters.
Further information
The current list of Dual Counter securities can be found on the HKEX website via the following link: https://www.hkex.com.hk/-/media/HKEX Market/Services/Trading/Securities/Securities-Lists/Dual_Counter_Security_List.xlsx
For further information, clients may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG clients using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.