The Hong Kong Monetary Authority is considering setting up a multi-currency clearing system. Deputy chief executive Tony Latter said such a move - which would be in response to market demand - would not happen until the proposed US dollar clearing system was running smoothly. A US dollar clearing system is planned for next year and will enable listed firms to raise funds in US dollars. 'It is always possible if there is a market demand, we would consider trying to replicate the proposed US dollar clearing arrangement for euro or other major currencies,' Mr Latter said. 'At the moment we ought to concentrate on setting up the US dollar clearing system.' He said there was no urgent need for clearing systems for other currencies. 'I think there may be a demand for a euro clearing system which may grow in time in Hong Kong. However, I don't think it exists yet,' Mr Latter said. Commonwealth Bank of Australia treasurer Andrew Fung Hau-chung agreed that demand for a euro clearing system was not strong. The US dollar clearing system will enable Hong Kong listed firms to issue US dollar-denominated securities. The move is also important for the Growth Enterprise Market, which wants to offer overseas companies the chance to list and have their shares traded in US dollars. The HKMA will appoint a bank to act as the settlement institution for the system. SETTLEMENT
