List of Settlement Banks and Designated Banks 
28/02/2017 
 

Admission Criteria of HKCC/SEOCH Settlement Banks and Designated Banks

In order to become a Settlement Bank, the bank has to fulfill the following criteria:

  • Being a licensed bank under Hong Kong Monetary Authority and with a minimum credit rating of A3 by Moody’s or equivalent, or being a Hong Kong dollar note-issuing bank;
     
  • Able to communicate with HKCC / SEOCH via SWIFT automatically; and
     
  • Possess competitive pricing and high utilization rate by the participants

The above criteria will also be applied to Designated Bank except for the credit rating requirement.  Moreover, a Settlement / Designated Bank is required to enter into a standard bank agreement with HKCC / SEOCH which set out the settlement requirements.

Application for becoming a Settlement / Designated Bank has to be in writing with explanation on how the admission criteria can be fulfilled with relevant supporting documents, where appropriate.  The application should be submitted to:

Cash & Derivatives Clearing Operations
HKFE Clearing Corporation Limited / The SEHK Options Clearing House Limited
30/F, One Exchange Square,
8 Connaught Place, Central, Hong Kong

Setting up of bank accounts with Settlement / Designated Banks

The money settlement process of HKCC and SEOCH is effected by fund transfers between the bank account of HKCC / SEOCH and the bank accounts of HKCC / SEOCH Participants maintained with the Settlement / Designated Bank.  All fund transfers, whether for amounts collected from or payable to a HKCC / SEOCH Participant, are initiated by HKCC / SEOCH issuing a Direct Debit Instruction or Direct Credit Instruction to the Settlement / Designated Bank as applicable.

For each settlement currency, a HKCC / SEOCH Participant is required to open bank accounts at the Settlement / Designated Banks appointed by HKCC / SEOCH for money settlement purpose.

Moreover, each HKCC / SEOCH Participant must execute the uniform Direct Debit Mandates to its Settlement / Designated Bank authorising the Settlement / Designated Bank to release funds to HKCC / SEOCH’s account upon receipt of direct debit instructions from HKCC / SEOCH.  The Direct Debit Mandates will become effective only when the Settlement / Designated Bank confirms its acceptance.  Direct Debit Mandates are available from HKCC / SEOCH.

List of Settlement Banks and Designated Banks for HKCC Participants
List of Settlement Banks and Designated Banks for SEOCH Participants