USD Clearing System in Hong Kong

Service Overview

In order to provide efficient settlement of USD transactions during Asian business hours, a USD clearing system was introduced on 21 August 2000. The Hong Kong Monetary Authority (“HKMA”) appointed the Hongkong and Shanghai Banking Corporation Limited as the Settlement Institution (“SI”) for the USD clearing system in Hong Kong.

The USD clearing system is built on the same infrastructure and operates in the same manner as the HKD clearing system.  The key functions for the USD clearing system are as follows:

  • USD Real Time Gross Settlement (“RTGS”)
  • Delivery versus Payment (“DvP”):
    (i) USD denominated debt securities through a linkage with Central Moneymarkets Unit, and
    (ii) traded USD bonds through a linkage with Malaysia’s Real Time Electronic Transfer of Funds and Securities
  • Central Clearing and Settlement System real time DvP
  • Payment versus Payment ("PvP") for USD/HKD, USD/EUR, USD/CNY, USD/Malaysian Ringgit, USD/Indonesia Rupiah and USD/Thai Baht foreign exchange transactions
  • Clearing and settlement of local USD cheque clearing (including demand drafts, cashier's orders and remittance advices, etc.)
  • USD cross-border joint cheque clearing
  • Electronic bulk clearing for USD CCASS (both same day and next day settlement) and USD IAH related transactions
  • USD Credit Card items i.e. interbank payments regarding transactions processed by UnionPay International
  • Electronic bulk clearing and same day settlement of USD electronic bill payment and electronic donation items
  • Clearing and settlement of USD electronic cheque ("e-Cheque")


The USD RTGS is almost an exact replica of the HKD RTGS, except the following:

The USD SI is a commercial bank. Each direct participant has to open and maintain a settlement account with the USD SI and USD transactions are settled across the books of the USD SI.
The USD RTGS adopts a two-tiered membership structure; Banks in Hong Kong can join the system as either direct participants or indirect participants; other institutions which have been permitted by the USD SI and the HKMA can also join the USD clearing system.
Direct participants may obtain interest-free intraday liquidity through intraday repo arrangement by pledging the Exchange Fund Bills and Notes or other eligible debt securities to the USD SI as collaterals.

All USD on-line transactions are settled real time on a gross basis and across the books of the USD SI. The settled payments are final and irrevocable.