Professional Documents
Culture Documents
RTGS systems in
Hong Kong
Ms Haster Tang
Payment Systems Operation Division
Hong Kong Monetary Authority
10 February 2009
Overview
Overview of financial infrastructure
in Hong Kong
2
Overview of payment and settlement infrastructure in Hong Kong
RupiahPayment
Rupiah Payment RinggitPayment
Payment Guangdong
Ringgit Guangdong
System
System System Province
DvP System Province
ininIndonesia
Indonesia
ininMalaysia
Malaysia
Shenzhen
PvP Shenzhen
Euro Renminbi
Renminbi
Euro Payment
AustraClear Payment
Payment Payment
- New Zealand System System Continuous
Continuous
System System
Linked
Linked
Settlement
Settlement
South Korea DvP (CLS)System
(CLS) System
4
Case study 1
5
Issue - Herstatt Risk
Hong Kong New York
Risk involving
Hong Kong US dollar settled
dollar settled
whole principal amount
at night time in
at day time for over 20 hours Hong Kong
Herstatt Risk
7
Implementation – PvP mechanism using Cross
currency payment matching processor (CCPMP)
BankBB
Bank BankAA
Bank BankBB
Bank BankAA
Bank
HKD
HKD Matching USD
Settlement USD
Settlement Settlement
Settlement
Institution
Institution Institution
Institution
RMB RTGS
Ringgit RTGS
HKD RTGS
USD RTGS
Indonesia
EUR RTGS
Rupiah RTGS
9
Case study 2
10
Issue – Pressure to increase turnover efficiency
Turnover in HK$ bn
Hong Kong dollar RTGS system No. of transactions
Turnover of HK dollar RTGS system more than doubled (+127%) from 1997
to 2008
Highest turnover in a day: HK$1.7 trillion (US$ 214 bn eqv) [5 Nov 2007 –
refund day of Alibaba.com IPO]
Need to find ways to use interbank liquidity more efficiently (i.e. a given
amount of liquidity in the RTGS to support more interbank transfer) 11
Solution – Multilateral offsetting
Payment instructions queued in RTGS system
Payment 1 Bank A to pay HK$5 million to Bank B
Payment 2 Bank B to pay HK$7 million to Bank A
12
Implementation –
RTGS Liquidity Optimiser (RLO)
14
Various Optimisers implemented in Hong Kong
08:30 Opening of HKD RTGS System
10:45
15:15
~ 7 RLO runs at 30-minute intervals
18:15