Hong Kong Exchanges and Clearing (HKEX) is launching a multi-year enhancement programme to upgrade its post-trade services for the cash equities market, with the aim of being ‘technically ready’ to support a T+1 settlement cycle by the end of 2025.
Bonnie Y Chan
Starting in mid-2025, HKEX will gradually introduce new features to its Orion Cash Platform (OCP), a key integrated platform for Hong Kong’s cash market. These features aim to improve the efficiency, reliability, and automation of post-trade services.
“At HKEX, we are committed to the long-term vibrancy of Hong Kong’s capital markets through ongoing investment in our technology and market infrastructure,” said Bonnie Y Chan, CEO of HKEX. We are pleased to be launching the modernisation programme for our cash market platform, developing the capabilities for real-time and more efficient post-trade services. The ongoing development of OCP will ensure that our markets remain well-positioned for future opportunities as they continue to expand in breadth and diversity, strengthening Hong Kong’s status as an IFC.”
As part of the enhancement programme, HKEX’s systems will be ready to support a T+1 settlement cycle by the end of 2025. However, the exchange said that any changes to Hong Kong’s settlement cycle will depend on extensive market consultations.
Key upgrades are set to include automated post-trade report downloads, real-time data transmission and processing, and real-time settlement instruction matching,
Richard Leung, group chief information officer at HKEX, said: “Platform development is a core part of HKEX’s strategy to futureproof its business and its markets. We are delighted to adopt modular architecture to introduce new post-trade features, in order to provide maximum flexibility for market adoption.
“We look forward to engaging and collaborating with our market participants on this infrastructure advancement journey, as together we work to enhance the competitiveness of Hong Kong’s capital markets.”
The new features will be rolled out progressively, with specific release dates announced in the future. In the meantime, HKEX said it will continue providing core post-trade processing through its Central Clearing and Settlement System (CCASS), while engaging with market participants on how the new OCP features will impact CCASS in the future.
Earlier this year, HKEX announced the development of the Orion Derivatives Platform (ODP) for Hong Kong’s derivatives market.