HONG KONG: HKSCC Publishes Supplemental Information on Launch of Enhancement of Settlement Arrangement

Monday June 16 2025

On 13^th June 2025, Hong Kong Securities Clearing Company Limited (HKSCC) issued a circular regarding the launch of the enhancement of the settlement arrangement for Multi-counter Eligible Securities in Central Clearing and Settlement System (CCASS) by adopting a single tranche multiple counters arrangement on 30^th June 2025.

Participating Dealers (PDs) operating in the Exchange Traded Fund (ETF) primary market are requested to note the following arrangements applicable to multi-counter ETFs and multi-counter securities in the underlying basket following the Enhancement:

• All ETF primary market activities for multi-counter ETFs and Multi-counter Eligible Securities in the underlying basket will be displayed under the domain settlement counter, which refers to the stock code of the trading counter in HKD.
• PDs are required to input the CCASS stock code of the domain settlement counter in their ETF In-Kind Creation/Redemption instructions and ETF Book-entry Deposit/Withdrawal instructions to CCASS. If the stock code of non-domain settlement counter is used, their instructions will be rejected.
• Similarly, for the Creation of Units – Debit and Credit Authorization Form, Redemption of Units -Debit and Credit Authorization Form, Creation of Units – Credit Authorization Form (Cash Application), Book-entry Deposit and Credit Authorization Form and Book-entry Withdrawal and Debit Authorization Form, PDs must submit their instructions and the respective debit and credit authorizations using the domain settlement counter.
• The current ETF creation and redemption process, submission channels, and instructions/authorization forms remain unchanged.

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