Friday October 16 2026
News Source: Global Exchanges
Focus: Clearing & Settlement
Type: General
Country: Hong Kong
On 16th October 2026, Hong Kong Exchanges and Clearing Limited (HKEX) Published its Consultation Conclusions on Accelerated Settlement for the Hong Kong Cash Market, confirming broad market support for advancing Hong Kong’s securities market to a T+1 settlement cycle. Considering stakeholder feedback, HKEX targets T+1 implementation in the second half of 2028, subject to market readiness and regulatory approval.
Consultation feedback identified several key focus areas for the transition to T+1, such as managing the increased operational demands from a compressed settlement cycle; ensuring securities availability and settlement preparation in a timely manner; enhancing automation and settlement data quality; and affirming the critical role of industry-wide coordination and readiness.
Following careful consideration of the feedback and to facilitate the transition, HKEX will adopt a three-layer implementation framework that covers:
- Layer 1: Enhancements to its own post trade infrastructure and operating model
- Layer 2: Development of targeted workflow tools and services
- Layer 3: Industry-wide coordination on market practices and ecosystem readiness for topics outside of its own infrastructure and operating model
In the first layer, HKEX will implement a refined T+1 settlement operation model across its market infrastructure. This includes extending Settlement Instruction processing windows, introducing additional free-of-payment settlement runs, providing risk reports earlier, and enabling real-time Settlement Instruction input and status updates via Application Programme Interface (API), as well as real-time matching through the Orion Cash Platform (OCP).
As part of the second layer, HKEX will develop value-added workflow tools, including a Settlement Profile Repository and Status Dashboard, to enhance settlement visibility, automation and the quality of Standing Settlement Instructions (SSI) data. HKEX will continue its engagement with stakeholders on trade allocation and confirmation matching, settlement instruction automation and other use cases that may support wider market adoption.
Considering the importance of market ecosystem readiness as part of the third implementation layer, HKEX will proactively engage the market, industry associations, and facilitate the establishment of industry working groups. As a start, HKEX will host industry townhalls in 2026 to provide further details on arrangements to support the industry’s coordinated end-to-end preparation.
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