Market Turnover
-






-
-
|
|
|
|
|
|
-
-
-
Loading

Hongkong Clearing Launches Tram Advertising Campaign

Corporate
22 Sep 1999

Hongkong Clearing today (Wednesday) introduced a new campaign that uses a colourful tram to promote the Investor Account Service. The campaign is designed to raise awareness of the Service, which gives investors enhanced legal protection and control over their shareholdings.

Tram Advertisement
The brightly painted tram, which will serve commuters on Hong Kong Island, is decorated to resemble an aquarium full of tropical fish. Investors' comments about the benefits of the Service and Hongkong Clearing's Investor Service Enquiry Hotline number (2979 7000) feature prominently in the design. Investors are encouraged to call the hotline and talk to the Company's Customer Services Representatives directly about the Service.

Latest Service Enhancements
Since the launch of the Investor Account Service in May 1998, Hongkong Clearing has introduced a range of new features for both Intermediary Participants (such as brokers and custodians) and Investor Participants. The latest enhancements, which were introduced in August 1999, include the Investor Settlement Instruction (ISI) Share On-hold mechanism and multiple Designated Bank accounts for Intermediary Participants.

With ISI Share On-hold, shares transferred to an Investor Account on a Delivery versus Payment (DVP) basis are put on-hold until the corresponding payment is confirmed good by the Investor Participant's Designated Bank. This helps to minimise brokers' exposure to the risks involved in providing the Investor Account Service to clients.

In addition, Broker and Custodian Participants can now register up to three Designated Bank accounts to facilitate their management of money settlement for Investor Accounts.

In August 1999, Hongkong Clearing admitted Exchange Fund Notes into the Central Clearing And Settlement System (CCASS) and has similar plans for Hong Kong Mortgage Corporation Notes, providing Intermediary and Investor Participants with a convenient way to tender for, clear and settle these instruments.

For a summary of service enhancements, please refer to Appendix I.

Application Status
As of 18 September 1999, Hongkong Clearing had received 2,479 applications for the Investor Account Service, including 2,138 applications for Individual Investor Accounts, 234 applications for Joint Individual Investor Accounts and 107 applications for Corporate Investor Accounts. A chart on the applications received since 27 March 1998, when the Company started to accept applications, is attached as Appendix II

Appendix I

Enhancements to the Investor Account Service

1. Enhancements for Intermediary Participants
(brokers and custodians)
Effective date

Batch upload of Investor Settlement Instructions (ISI) to facilitate brokers' transmission of ISI files to CCASS

May 98

Separate user profiles for staff inputting and authorising Settlement Instructions (SI) and ISI. The function strengthens Intermediary Participants' internal control systems

Aug 98

ISI counterparty lists. The lists restrict the entry of ISI to a specified group of counterparties, therefore also help to strengthen Participants' internal control systems

Aug 98

Up to three Designated Bank accounts to facilitate Intermediary Participants' management of money settlement for Investor Accounts

Aug 99

ISI Share On-hold mechanism to help reduce broker's exposure to the risks involved in providing the Service to clients

Aug 99

2. Service Enhancements for Investor Participants Effective date

$200 minimum monthly fee waived

Jul 98

ISI counterparty list, transaction limit and maker-checker functions for Corporate Investor Participants. The new features strengthen Corporate Investor Participants' internal control systems

Aug 98

Electronic Initial Public Offering (EIPO) subscriptions. CCASS Participants, including Investor Participants, can apply through CCASS Terminals or the CCASS Phone System for new shares from those IPOs which accept the EIPO service

May 99

Exchange Fund Notes (EFN) admitted to CCASS. Participants, including Investor Participants, can tender for, clear and settle EFN in CCASS

Aug 99

Admission of Hong Kong Mortgage Corporation Notes. This will provide CCASS Participants, including Investor Participants, with a convenient way to tender for, clear and settle such Notes

Oct 99 (Tentative)

Link between CCASS and the Stock Exchange's AMS/3 order routing system. AMS/3 will allow investors to input trade orders through the Internet or mobile phones. The CCASS linkage will help lay the foundation for straight-through processing in securities transactions

2nd Quarter of 2000

Access to Investor Accounts via the Internet. This will offer Investor Participants additional convenience in managing and operating their accounts

Mid-2000

Expansion of the Service to include companies incorporated outside Hong Kong

Planned

Appendix II

press_chart1


-End-

Updated 22 Sep 1999