INFORMATION group Swift has signed 10 brokerages and four fund managers in Hong Kong for its electronic brokerage settlements system.
The group plans to establish its network as the standard used by brokerages in the territory to settle transactions, said Swift regional director Michael King.
The system is used by most banks around the world to settle inter-bank transactions, but the service has only recently been extended to brokerages and fund managers.
Swift eliminates the paperwork associated with the sale and transfer of shares by handling the information electronically.
A growing band of subscribers in Hong Kong, including Lehman Brothers, Morgan Stanley and HSBC Asset Management have started using the service.
Most share trading in the territory is still carried out by fax and telex, which are cumbersome and prone to errors.