Hong Kong Securities Clearing is developing a multi-currency securities settlement facility to cope with future demand, according to clearing house chief executive Stewart Shing Shin-cheung.
A detailed plan for the system, which would be able to clear securities denominated in US dollars and other foreign currencies, would be unveiled in the second half of next year, he said.
He added the proposed settlement system would need to be launched together with the US dollar clearing system, which is currently being studied by the Hong Kong Monetary Authority.
Market sources said the proposed securities settlement system would be aimed at coping with increases in demand for US dollar securities settlement after the launch of the Growth Enterprise Market (GEM).
Securities issued on the soon-to-be-launched GEM are expected to be traded mainly in US dollars in a bid to attract international investors.
HKMA chief executive Joseph Yam Chi-kwong suggested Hong Kong banks were a prime launch pad for a possible US-dollar clearing system.
