J.P. Morgan Worldwide Securities Services is partnering with the Hong Kong Monetary Authority (HKMA) to launch a repo financing collateral management platform in Hong Kong.
The platform will facilitate repo financing transactions between members of Hong Kongs Central Moneymarkets Unit (CMU) and international financial institutions. CMU members will be able to accept international securities lodged with J.P. Morgan and other international securities depositaries as collateral. The program will also offer access to international financial institutions to liquidity for offshore renminbi, euro, Hong Kong dollars and U.S. dollars in Hong Kong.
With the launch of this repo financing program, we have taken a step forward in the development of Asias capital markets, says Esmond Lee, executive director, Financial Infrastructure Department, Hong Kong Monetary Authority. Hong Kong will certainly benefit since this will help provide more local liquidity to market players in a secured manner and contribute to enhancing the financial stability of Hong Kong.
J.P. Morgan has developed a new collateral management solution to support the program, which will manage the end-to-end flow of repo activity between CMU members and international financial institutions operating regionally or around the world.
We are delighted to have partnered with the Hong Kong Monetary Authority for this important step in the development of Hong Kongs capital markets infrastructure, says Kirit Bhatia, head of Technical Sales, Asia ex-Japan, for J.P. Morgan Worldwide Securities Services.
(CG)