29.      

What is DCASS?

DCASS, the Derivatives Central Clearing and Settlement System, is an integrated clearing and settlement system for all HKEx options and futures contracts.  It increases clearing flexibility and supports multiple markets, improves straight through processing opportunities, raises operational efficiency and provides additional risk management functionalities.

DCASS, which was launched in April 2004, replaced two derivatives clearing and settlement systems operated by HKEx's subsuduarues, the INTRACS/400 system operated by the HKFE Clearing Corporation Limited and the Traded Options System operated by SEHK Options Clearing House Limited (SEOCH).  Both systems were implemented several years ago.  DCASS was developed as increasing demand for operational efficiency, together with market developments and new challenges have rendered the technology, design and the functionality of the two systems inadequate.

For more information about DCASS, please refer to the Market Operation and Infrastructure on the HKEx website.