CCASS Real Time Delivery vs. Payment

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CCASS Real Time Delivery vs. Payment

Service Overview

Hong Kong Interbank Clearing Limited provides money settlement services to the Central Clearing and Settlement System (CCASS), operated by the Hong Kong Securities Clearing Company Limited, a wholly owned subsidiary of the Hong Kong Exchanges and Clearing Limited (HKEx).

CCASS is a computerized book-entry clearing and settlement system for transactions in securities listed on the Stock Exchange of Hong Kong. Introduced in June 1992, CCASS was originally designed to serve primarily market intermediaries of the Hong Kong securities market, such as, brokers and custodians (CCASS Participants) who in turn act as mini-clearing houses for their clients. Thereafter, in recognition of investors’ desire to enjoy the benefits of the book-entry clearing and settlement system and to have legal and physical control over their shares, individual and corporate investors (Investor Participants) were allowed to open an investor account in CCASS starting May 1998.

 

Building upon the capability of the Real Time Gross Settlement systems in Hong Kong, the Delivery versus Payment (DvP) facilities for debt securities transactions have been extended to securities transactions settled in CCASS. A link between Hong Kong Interbank Clearing Limited and CCASS was set up in May 1998 to provide real time DvP facility for securities denominated in HKD in order to reduce settlement risks and improve settlement efficiency.