Frequently Asked Questions 
19/11/2010 
 

Part 4 : Securities Clearing and Settlement

Clearing and Settlement 
 
 

4.1 Is 'Standing Intra Day Payment Instruction' service available?
   

CCASS Participants can select to set up a Standing Intra Day Payment Instruction through CCASS Terminals to receive refund of any excess cash prepayment and/or receive their CNS money obligations due from HKSCC before the generation of Intra Day Payment instructions by CHATS, which is at around 2:30 pm on each business day. 
    

4.2

Is RDP/DVP on-hold applicable? 
  

RDP/DVP on-hold is also applicable for RMB denominated transactions.  
    

4.3 What is the settlement arrangement if the RMB bank account has yet to set up?
   

Where a Clearing Participant is in the process of opening a RMB bank account for CCASS money settlement purposes, HKSCC will make payment to the Clearing Participant by paper cheque or other means considered appropriate by HKSCC.  For delivering Clearing Participants, payment will be made on the business day following the date of settlement.  For receiving Clearing Participants, payment must be made directly into HKSCC’s designated RMB bank account before 5:45 pm on the date of settlement.  
 

4.4 What kind of products will be settled in RMB?
 

Those Eligible Securities denominated in RMB which are accepted for clearing and settlement in CCASS from time to time will be announced via Participant Circulars issued by HKSCC.
   

  
Nominee Services
  

4.5 Can CCASS Participants set up a 'Standing Intra Day Payment Instruction' in RMB?
   

CCASS Participants can select to set up a Standing Intra Day Payment Instruction through CCASS terminals to receive Corporate Actions related payment (CA payment) before the generation of Intra Day Payment instruction by CHATS, which is at around 2:30 pm on each business day.  CCASS Participants which do not opt to receive intra-day CA payments will continue to receive such payments via DCI at day-end.  
 

4.6 What's the arrangement if dividends are payable in RMB but CCASS Participants have not yet set up designated bank accounts for RMB?
   

CCASS Participants are advised to open RMB bank accounts to receive dividend payments in RMB.  If a CCASS Participant has yet to set up a RMB bank account, the Participant will not be able to receive dividend payments via electronic means.  Instead, HKSCC will issue a paper cheque in RMB to be collected by the Participant or such other means as considered appropriate by HKSCC upon receipt of Participant's written instruction.  Bank charges will be borne by the Participant.   
 

  
Tariff
  
4.7 Is the current fee schedule also applicable to RMB items?
   

Similar to the money settlement arrangement for HKD and USD transactions, there will also be a money settlement fee for RMB denominated transactions.  Other than that, the existing tariffs stated in Section 21 and 22 of the CCASS Operational Procedures still apply. 
 

4.8 What's the money settlement fee for RMB items? 
 

The money settlement fee for RMB items will be HK$0.5 for each DDI/DCI/EPI issued or each CPI settled by HKSCC and HK$12.80 for each Intra-day Payment Instruction issued by HKSCC.
 

4.9

Can CCASS Participants settle CCASS fees for RMB items in HKD?
  

Except dividend collection fees, which will be deducted from the entitlements, CCASS fees for RMB items will be settled in HKD at the exchange rate as determined by HKSCC from time to time.  
    

4.10 Should HKSCC consider setting a new CCASS fee schedule applicable to RMB items based on the current CCASS fees charged in HKD?
 

Except the money settlement fee, which is subject to the fee charged by its RMB Agent Bank, HKSCC will use the existing fee schedule for RMB items and the charges will be in HKD for the time being.    The arrangement is similar to the current fee set-up for USD items.
     

  
Technical
 

4.11 Do CCASS Participants need to make any changes to their back-office systems to facilitate the settlement of RMB denominated transactions? 
 

CCASS is able to support multiple currencies including HKD, USD and RMB.  There is no layout change to the current upload files, report text and report data.  CCASS Participants should check with their IT departments or BOS vendors on the readiness of their BOS systems in order to support the settlement of RMB denominated transactions in addition to transactions in HKD and USD.   
 

4.12 With the launch of RMB settlement operations, will there be changes to the layout of CCASS reports?
 

There is no CCASS report layout change due to the launch of RMB settlement operations.  CCASS Participants can distinguish RMB denominated transactions based on the currency code (i.e. CNY) shown in reports.