Hong Kong Monetary Authority The central bank of Hong Kong (HKMA) said it was committed to advancing innovations that improve efficiency and resilience.
In his statement, HKMA deputy director general Howard Lee He reaffirmed his determination as Hong Kong’s financial infrastructure evolves to meet the growing demands of the market.
Lee made the comment as the city’s central bank and stock exchange operator launched a pilot to test the use of e-HKD in derivative transactions after business hours.
Hong Kong Exchanges and Clearing (HKEX) and HKMA said the joint pilot will explore the use of e-HKD, a 24-hour wholesale central bank digital currency, for advance margin payments in the derivatives market’s after-hours trading session.
The initiative aims to improve Hong Kong’s capital markets infrastructure by offering clearing participants a more flexible and timely way to make advance margin payments outside normal banking hours.
Under the current regulation, clearing participants must submit advance margin deposit requests to the HKFE Clearing Corporation by 15:00 in order for the funds to be counted for the next after-hours trading session.
HKEX invites clearing participants under the HKFE Clearing Corporation to participate in optional intrinsic value trial transactions. Wider adoption will depend on regulatory approval, market readiness and other considerations.
Vanessa LauHKEX chief operating officer said the project aims to address long-standing operational woes while strengthening the resilience of Hong Kong markets.
The pilot forms part of Hong Kong’s broader effort to develop digital financial infrastructure and strengthen its position as an international financial center through the wholesale adoption of emerging financial technologies, including CBDCs.
