Hong Kong Exchanges and Clearing Limited (HKEx) will introduce the second phase of CCASS/3, the next generation of the Central Clearing and Settlement System, on Monday, 9 December, pending the successful conversion of the system from the Stage-1 to Stage-2 format during the weekend of 7 and 8 December.

The launch date was set after the successful completion of market rehearsals. The plan has been approved by the Securities and Futures Commission.

CCASS Participants will be required to complete some tasks during the system conversion. HKEx will keep the market and CCASS Participants updated on 8 December on the progress of the conversion.

CCASS/3 Stage-2 supports several new features, including one that allows CCASS Participants to manage their collateral electronically via the Common Collateral Management System, or CCMS, functions. In addition, the new system infrastructure enables the validation process for Settlement Instruction and Investor Settlement Instruction upload files to be executed on an ad hoc basis. The layout of batch upload files and report files will also be changed to accommodate an extended range of stock codes, International Securities Identification Numbers, or ISIN, and Bank Identifier Codes, or BIC, to meet future market development needs.

The introduction of CCASS/3 Stage-2 will be followed by a two-week stabilisation period, as a prudent measure. During that time, the CCASS/3 Stage-1 system will be on standby as a backup.

HKEx began introducing CCASS/3 in May this year with the implementation of the first phase. In the Stage-1 rollout, CCASS Participants and their Designated Banks migrated to the CCASS/3 Network and CCASS/3 Terminals. Further to the Stage-2 rollout of functional infrastructure upgrades, the third and final rollout of CCASS/3 will involve the introduction of Participant Gateways.

Upon full implementation, and on market demand, CCASS/3 will also be capable of supporting multiple markets with different settlement cycles and extended operating hours.

Further information about CCASS/3 is available on the HKEx website athttp://www.hkex.com.hk.