Hong Kong Exchanges and Clearing Limited (HKEx) will introduce the first phase of CCASS/3, the new generation of the Central Clearing and Settlement System, on 16 May 2002 (Thursday). This has been approved by the Securities and Futures Commission.

The launch date was set after the successful completion of market rehearsals.

HKEx is introducing the new system in phases. In the stage-1 rollout which starts on 16 May, CCASS Participants and their Designated Banks will be gradually migrated from the existing CCASS Network, CCASS Terminals and Enhanced CCASS Terminals to the new CCASS/3 Network and CCASS/3 Terminals. Subsequent rollout stages will involve functional infrastructure upgrades and the introduction of Participant Gateway. The upgrades will include the introduction of multiple-market and different settlement cycle capability.

Under the stage-1 rollout schedule, CCASS Participants and their Designated Banks will be migrated to the CCASS/3 Network and CCASS/3 Terminals in batches on 16, 21 and 24 May. The migration will be followed by a two-week stabilisation period. The stage-1 rollout will be completed on 7 June.

To ensure CCASS Participants and their Designated Banks can have access to CCASS at all times, the existing CCASS Network, CCASS Terminals and Enhanced CCASS Terminals will be on standby until the completion of the stabilisation period.

Kwong Ki-chi, HKEx's Chief Executive, said the full implementation of CCASS/3 would give HKEx the securities clearing infrastructure to meet future challenges. "The CCASS/3 network connection has been designed to provide integrated access to the FinNet currently operated by the Securities and Futures Commission, which was built to connect financial institutions in Hong Kong to effect straight-through-processing and ultimately real-time financial transactions," he said.

"The open-interface architecture of CCASS/3 will give us more flexibility to quickly respond to changing market demands. CCASS/3 will also be able to support more regional and global products with different features and settlement periods. It will improve the operational efficiency of our market and market participants, and help strengthen Hong Kong's position as a major regional and international financial centre," Mr Kwong added.