The Hong Kong Monetary Authority Wednesday announced a second five-year term for the Standard Chartered Bank (Hong Kong) Limited (SCBHK) to be the settlement institution for the euro clearing system in the city.
The five-year term is to begin in March 2008, when the bank's first five-year term for the same role is due to conclude, the Monetary Authority said in a press release.
The Monetary Authority, which virtually serves as the central bank in the Special Administrative Region of Hong Kong, said the euro clearing system has been an integral part of the city's multi- currency and multi-dimensional clearing and settlement platform.
Hong Kong's euro clearing system settled a monthly average of 3, 152 transactions and had an average monthly turnover of 27 billion euros in the second quarter. The system currently has 28 direct participants and 21 indirect CHATS users, said the release.
The euro clearing system in Hong Kong helps facilitate the efficient real-time settlement of euro transactions during Asian business hours.
Through establishing linkages with the HK dollar and U.S. dollar clearing systems in Hong Kong and with securities settlement systems, the euro clearing system provides payment- versus-payment settlement for foreign exchange transactions involving euro, and delivery-versus-payment settlement of euro denominated securities.
Both arrangements have helped increase settlement efficiency and eliminate settlement risk, the Monetary Authority said.
Source: Xinhua
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