The Hong Kong Stock Exchange and Clearing (0388) and the Hong Kong Monetary Fund announced on Thursday a joint pilot project of a new digital payment solution for the After-Hours Trading (AHT) session in the derivatives market.
HKEX and HKMA are exploring the use of e-HKD – a wholesale central bank digital currency (CBDC) operating 24/7 – for advance margin payments during the AHT session, enhancing the risk management capabilities of the derivatives market outside regular banking hours while maintaining existing operational workflows.
The pilot project provides more flexibility and efficiency than the existing arrangement for advance margin payments. Currently, Clearing Participants (CPs) must submit advance margin deposit requests to HKEF Clearing Corporation Limited (HKCC) by 3 pm for funds to be counted for the subsequent AHT session.
HKEX said it is inviting CPs under HKCC to participate in Real-Value Trial Transactions of this pilot initiative on an optional basis. The Real-Value Trial Transactions, as well as any subsequent wider adoption, are subject to regulatory approval, market readiness, and other relevant considerations.
Vanessa Lau, chief operating officer of HKEX, said HKEX aims to provide a more flexible and timely payment option outside regular business hours and to address longstanding operational pain points in the industry, thereby advancing market accessibility and strengthening Hong Kong’s capital markets infrastructure.
Howard Lee, HKMA’s deputy chief executive, said the pilot enables the advancement of margin payments for AHT using e-HKD, demonstrating a wholesale application of CBDC in a live market environment, while underscoring our strong partnership with the industry stakeholders in driving financial innovation.
