Clearing and Settlement Arrangements for Securities and Derivatives Markets 
20/04/2017 
 

If a Typhoon Signal No 8 (or above) or Black Rainstorm Warning has been issued by the Hong Kong Observatory, please refer to news reports through the electronic news media or messages disseminated through HKEX’s market systems on the current signal/warning’s impact on clearing and settlement services.  The following are the key clearing and settlement arrangements during typhoons and rainstorms for the public’s easy reference.

Securities Market

(a) Typhoon Signal No 8 (or above) / Black Rainstorm Warning issued before 9:00 am on a Business Day (The text in all cells should be read together with the text in the first cell of the first column.)


If the signal/warning is issued before 9:00 am
AND :


Typhoon Signal No 8 (or above)


Black Rainstorm Warning



Signal/warning is discontinued
at or before 12:00 noon


The day will be tre
ated as a Settlement Day.

Central Clearing and Settlement System (CCASS) services will resume two hours following the discontinuation of the signal/warning.


Signal/warning is discontinued after 12:00 noon

 


There will be no CCASS services for the day and it will not be tre
ated as a Settlement Day.

 

(b) Typhoon Signal No 8 (or above) / Black Rainstorm Warning issued at or after 9:00 am on a Business Day

 

 


Typhoon Signal No 8 (or above)


Black Rainstorm Warning

If the signal/warning is issued at or after 9:00 am

 


The day will be tre
ated as a Settlement Day.


CCASS services will normally be terminated in 15 minutes following the issuance of the signal, except:

  • Matching of Settlement Instructions and Batch-settlement-runs will be processed in CCASS as normal.

  • Settlement related maintenance functions will continue to be available for use within one hour following the issuance of the signal and will be terminated thereafter.

  • The following functions will continue to be available for use in accordance with their normal service hours:

- Settlement related enquiry functions
- Enquire Broadcast Message function
- Money settlement services via CHATS Payment Instructions and Intra-day Payment Instructions
- Retrieval and printing of CCASS reports


Normal CCASS services will be available, with
matching of Settlement Instructions and Batch-settlement-runs processed as normal.

 

 

 

If the signal/warning is issued between 9:00 am and 3:00 pm, except where such signal/warning is cancelled at or before 12:00 noon


The day will not be tre
ated as a Settlement Day for CCASS money settlement in relation to Direct Debit Instructions, Direct Credit Instructions, Electronic Payment Instructions and autopay instructions (if applicable) since Hong Kong Interbank Clearing Limited, or HKICL, will not provide clearing services for the day.  Hence, the generation of CCASS money settlement instructions for the day will be deferred to the following Business Day upon resumption of CCASS.

For details, please refer to the Hong Kong Securities Clearing Company Limited rules and procedures at http://www.hkex.com.hk/eng/rulesreg/clearrules/ccassop/documents/sec17.pdf (Section 17).

 

Derivatives Market

Clearing and Settlement Arrangements under Typhoon Signal No. 8 (or above) on a Business Day

(a)   Clearing Arrangement

Futures and Options

 

Typhoon Signal No. 8 (or above) is discontinued at or before 12:00 noon

Typhoon Signal No. 8 (or above) is discontinued after 12:00 noon

Signal is issued before 7:30 am

Clearing services will resume two hours after the discontinuation of the signal.

Clearing services will cease at T+1 Session Cutoff Time1; or 6:45 pm if T+1 Session does not apply to the product.

Clearing services will resume at 2:00 pm and cease at 6:45 pm2*.

 

Signal is issued at or after 7:30 am and before 12:00 noon

Clearing services will cease two hours after the issuance of the signal.

Clearing services will then resume two hours after the discontinuation of the signal.

Clearing services will cease at T+1 Session Cutoff Time1; or 6:45 pm if T+1 Session does not apply to the product. 
 

Clearing services will cease two hours after the issuance of the signal and there will be no clearing services for the rest of the day.

Signal is issued after 12:00 noon and before 5:15 pm

Not applicable.

Clearing services will cease two hours after the issuance of the signal or at 6:45 pm2, whichever is earlier. 

Signal is issued at or after 5:15 pm

Not applicable.

Clearing services will cease two hours after the issuance of the signal or at T+1 Session Cutoff Time1, whichever is earlier.

For details, please refer to Chapter 6 of the Clearing Procedures of HKFE Clearing Corporation Limited. 

Notes:

1: For T+1 Session Cutoff Time for various products, please refer to Appendix B to the Rules of HKFE Clearing Corporation Limited.
2:   Clearing services for T Session will be offered, and will cease at System Input Cutoff Time.
*: To facilitate Clearing Participants to meet the mandatory intra-day variation adjustment and margin call calculation on the first Business Day after discontinuation of the signal, clearing services will be offered for Clearing Participants to perform post-trade adjustments for those trades executed during T+1 Session on previous Business Day.

 

Stock Options

 

Typhoon Signal No. 8 (or above) is discontinued at or before 12:00 noon

Typhoon Signal No. 8 (or above) is discontinued after 12:00 noon

Signal is issued before 9:00 am

Clearing services will resume two hours after the discontinuation of the signal and cease at 6:45 pm#.

No clearing services will be available for the day.

If the signal is in effect on the expiry day, then the expiry day for the spot month series will be deferred to the next Business Day.

 

Signal is issued at or after 9:00 am

Clearing services will cease either two hours after issuance of the signal or at the end of its clearing services hours at 6:45 pm#, whichever is earlier.

For details, please refer to Chapter 15 of Operational Clearing Procedures for Options Trading Exchange Participants of SEOCH 

Note:

#: 6:45 pm is the System Input Cutoff Time on each Business Day.

 

(b)   Settlement Arrangement

Futures and Options

 

Typhoon Signal No. 8 (or above) is discontinued at or before 12:00 noon

Typhoon Signal No. 8 (or above) is discontinued after 12:00 noon

Signal is issued before 9:00 am

Money settlement and collateral management services will resume two hours after the discontinuation of the signal.

Requests for cash delivery and redelivery will be processed on a best effort basis subject to the availability of the applicable services of corresponding banks.

No money settlement and collateral management services will be available for the day.  In such event, money settlement will be effected on the next Business Day, and will be due for settlement by no later than 9:15 am if such Business Day is a full Bank Business Day or one hour after resumption of money settlement services if such Business Day is not a full Bank Business Day.

 

Signal is issued at or after 9:00 am

Money settlement services will be terminated two hours after the issuance of the signal.

 

Signal is issued at or after 9:00 am and prior to the deadline for requests for cash delivery and redelivery (normally at 11:00 am)

For collateral management services, those requests for cash delivery and redelivery already submitted will be accepted as usual, subject to the availability of the applicable services of corresponding banks.

For details, please refer to Chapter 6 of the Clearing Procedures of HKFE Clearing Corporation Limited.

 

Stock Options

 

Typhoon Signal No. 8 (or above) is discontinued at or before 12:00 noon

Typhoon Signal No. 8 (or above) is discontinued after 12:00 noon

Signal is issued before 9:00 am

Money settlement services will resume two hours after the discontinuation of the signal.

Requests for cash delivery and redelivery before the cut-off time (11:00 am) and collateral securities transfer between CCMS and CCASS will be processed on a best effort basis and subject to the availability of the applicable services of corresponding banks, CCMS and CCASS.

The day will be treated as a Settlement Day for stock settlement purposes and the settlement process will be effected as usual.

No money settlement services will be available for the day.  In such event, money settlement will be effected on the next Business Day, and will be due for settlement by no later than 9:15 am if such Business Day is a full Bank Business Day or one hour after resumption of money settlement services if such Business Day is not a full Bank Business Day.

No request for cash delivery and redelivery and for collateral securities transfer between CCMS and CCASS will be processed for the day.

The day will not be treated as a Settlement Day for stock settlement purposes.  SEOCH will extend one Settlement Day for the settlement of pending stock transactions resulting from exercise or assignment of transactions effected two Business Days prior to the day.

 

Signal is issued at or after 9:00 am

Collection of Daily Settlement Call will be effected as normal. Any intra-day margin call issued one hour or more before the issuance of the signal will remain due for settlement within one hour after the call is issued.

Requests for cash delivery and redelivery received before the normal cut-off time (11:00 am) and collateral securities transfer between CCMS and CCASS will be processed on a best effort basis and subject to the availability of the applicable services of corresponding banks, CCMS and CCASS.

The day will be treated as a Settlement Day for stock settlement purposes and the settlement process will be effected as usual.

For details, please refer to Chapter 15 of Operational Clearing Procedures for Options Trading Exchange Participants of SEOCH.

 

Clearing and Settlement Arrangements under Black Rainstorm Warning on a Business Day 

(a)   Clearing Arrangement 

Futures and Options

 

Black rainstorm warning is discontinued at or before 12:00 noon

Black rainstorm warning is discontinued after 12:00 noon

Warning is issued before 7:30 am

Clearing services will resume two hours after the discontinuation of the warning.

Clearing services will cease at T+1 Session Cutoff Time1; or 6:45 pm if T+1 Session does not apply to the product.

 

Clearing services will resume at 2:00 pm and cease at 6:45 pm2*.

Warning is issued at or after 7:30 am

Clearing services will cease at T+1 Session Cutoff Time1; or 6:45 pm if T+1 Session does not apply to the product.

For details, please refer to Chapter 6 of the Clearing Procedures of HKFE Clearing Corporation Limited. 

Notes:

1: For T+1 Session Cutoff Time for various products, please refer to Appendix B to the Rules of HKFE Clearing Corporation Limited.
2:   Clearing services for T Session will be offered, and will cease at System Input Cutoff Time.
*: To facilitate Clearing Participants to meet the mandatory intra-day variation adjustment and margin call calculation on the first Business Day after discontinuation of the warning, clearing services will be offered for Clearing Participants to perform post-trade adjustments for those trades executed during T+1 Session on previous Business Day.

    

Stock Options

 

Black rainstorm warning is discontinued at or before 12:00 noon

Black rainstorm warning is discontinued after 12:00 noon

Warning is issued before 9:00 am

Clearing services will resume two hours after the discontinuation of the warning and will cease at 6:45 pm^.

No clearing services will be available for the day.

If the warning is in effect on the expiry day, then the expiry day for the spot month series will be deferred to the next Business Day.

 

Warning is issued at or after 9:00 am

Clearing services will continue to be available and cease at 6:45 pm^.

For details, please refer to Chapter 15 of Operational Clearing Procedures for Options Trading Exchange Participants of SEOCH. 

Note:

^:  6:45 pm is the System Input Cutoff Time on each Business Day.
 

(b)   Settlement Arrangement 

Futures and Options

 

Black rainstorm warning is discontinued at or before 12:00 noon

Black rainstorm warning is discontinued after 12:00 noon

Warning is issued before 9:00 am

Money settlement and collateral management services will resume two hours after the discontinuation of the warning. 

Requests for cash delivery and redelivery will be processed on a best effort basis subject to the availability of the applicable services of corresponding banks.

No money settlement and collateral management services will be available for the day.  In such event, money settlement will be effected on the next Business Day, and will be due for settlement by no later than 9:15 am if such Business Day is a full Bank Business Day or one hour after resumption of money settlement services if such Business Day is not a full Bank Business Day.

 

Warning is issued at or after 9:00 am

Money settlement and collateral management services will continue to be available in accordance with their normal services hours.

For details, please refer to Chapter 6 of the Clearing Procedures of HKFE Clearing Corporation Limited.

 

Stock Options

 

Black rainstorm warning is discontinued at or before 12:00 noon

Black rainstorm warning is discontinued after 12:00 noon

Warning is issued before 9:00 am

Money settlement services will resume two hours after the discontinuation of the warning. 

Requests for cash delivery and redelivery before the cut-off time (11:00 am) and collateral securities transfer between CCMS and CCASS will be processed on a best effort basis and subject to the availability of the applicable services of corresponding banks, CCMS and CCASS. 

The day will be treated as a Settlement Day for stock settlement purposes and the settlement process will be effected as usual.

 

No money settlement services will be available for the day.  In such event, money settlement will be effected on the next Business Day, and will be due for settlement by no later than 9:15 am if such Business Day is a full Bank Business Day or one hour after resumption of money settlement services if such Business Day is not a full Bank Business Day.

No request for cash delivery and redelivery and for collateral securities transfer between CCMS and CCASS will be processed for the day.

The day will not be treated as a Settlement Day for stock settlement purposes.  SEOCH will extend one Settlement Day for the settlement of pending stock transactions resulting from exercise or assignment of transactions effected two Business Days prior to the day.

 

Warning is issued at or after 9:00 am

Normal cash settlement transactions will be processed for the day. 

Requests for collateral securities transfer between CCMS and CCASS will continue to be available for the day.

The day will be treated as a Settlement Day for stock settlement purposes and the settlement process will be effected as usual.

For details, please refer to Chapter 15 of Operational Clearing Procedures for Options Trading Exchange Participants of SEOCH.