Standard Chartered announced today that it has today been appointed by the Hong Kong Monetary Authority (HKMA) as the Settlement Institution for the euro clearing system in Hong Kong.
The euro clearing system, the first in Asia, will facilitate the efficient settlement of euro transactions on a real-time basis within the Asian time zones. It is expected to launch in the second quarter of 2003.
“By facilitating interbank payments in euro, as well as delivery versus payment for euro denominated securities traded in Hong Kong, and payment versus payment for foreign exchange transactions between euro and US dollar, settlement efficiency will be enhanced and settlement risk greatly reduced, ” said Mr Joseph Yam, Chief Executive of the HKMA.
“Although a new currency, the use of euro is increasingly prevalent in Hong Kong and Asia and will become more so. Standard Chartered will use its extensive global network, particularly in the region, to promote euro as an option by offering banks real-time settlement in the Asian time zones,” said Mr Peter Wong, Director of Standard Chartered Bank.