The HKEX is going to draft a white paper that summarises the opinions of the financial community about the settlement cycle process, CEO Bonnie Chan said in a blog post on Monday. The paper will be published in the first half of next year.
After discussions about settlement, the exchange “will push forward with enhancing our systems, creating a next-generation clearing and settlement platform”, which will make the technology underpinning the HKEX’s cash market infrastructure to allow for one day settlement – known as “T+1” – ready by the end of 2025.
Currently it takes two days after the trade day for transactions to be cleared and settled.
“We’re dedicated to create the conditions for success while building our long-term resilience,” Chan said. “We’re channelling the spirit of the Olympic Games to go ‘faster, higher, and stronger – together.”
“Enhancing the vibrancy of our markets is integral to this vision,” said Chan.
The move is part of an effort to bolster the exchange by the CEO, who was appointed in March. In her blog post, she said the job has “turned out to be both more challenging and more enjoyable than I ever imagined.”