HKEX to launch digital payment scheme for post-market margin calls on 14 December
Hong Kong Exchanges and Clearing will launch a new digital payment scheme on 14 December, allowing settlement participants to pay margin calls during the after-hours trading session for derivatives. The scheme builds on a pilot with the Hong Kong Monetary Authority using wholesale central bank digit
Hong Kong Exchanges and Clearing (HKEX) announced on 13 November that it will launch a new digital payment scheme on 14 December, facilitating settlement participants in paying prepaid margin deposits during the after-hours trading session for the derivatives market.
The new service is built on a collaboration between HKEX and the Hong Kong Monetary Authority (HKMA) in June, which explored the use of a digital Hong Kong dollar, specifically a wholesale central bank digital currency (CBDC) operating on a 24/7 basis, to pay prepaid margin deposits after the market close.
Once the scheme is introduced, eligible clearing participants of futures clearing companies may choose to use this digital payment method to submit prepaid margin applications between 5pm and 1:30am, allowing the funds to be used for the corresponding post-market trading session. The extended payment window will supplement existing payment arrangements, enabling participants to manage their capital-based position limit usage more flexibly outside normal banking hours.
HKEX has conducted real transaction trials with the HKMA, settlement banks and clearing participants to verify the technical and operational readiness of the new scheme.
This flexible payment method will support HKEX's planned extension of the post-market trading session for derivatives products from March next year, aiming to provide more convenient services and enhance operational resilience for the market.