J.P. Morgan has executed Hong Kong’s first Hong Kong Dollar (HKD) tri-party repo transaction between Bank of China (Hong Kong) (BOCHK) and Barclays, the first such trade following the launch of the Hong Kong Monetary Authoritys (HKMA) cross-border collateral management service in June this year.
The HKMA Repo Financing Program, which also includes Euroclear, connects regional liquidity with global markets by utilizing international securities as collateral and providing a channel for financial institutions seeking to widen their liquidity sources in HKD, renminbi (CNH), USD and EUR. In this instance, the transaction between BOCHK and Barclays leveraged the cross-currency, cross-border and global capabilities of the Repo Financing Program and J.P. Morgan platforms by mobilizing U.S. Treasuries against HKD liquidity.
Kirit Bhatia, head of Technical Sales, Asia ex-Japan, J.P. Morgan Worldwide Securities Services, said: This is an exciting milestone for Hong Kong as it points to the new opportunities for local and global firms seeking to participate more deeply in the regions rapidly developing capital markets. We look forward to playing a key role in the markets ongoing development.
(JDC)