The money settlement process of HKCC and SEOCH is effected by fund transfers between the bank account of HKCC / SEOCH and the bank accounts of HKCC / SEOCH Participants maintained with the Settlement / Designated Bank. All fund transfers, whether for amounts collected from or payable to a HKCC / SEOCH Participant, are initiated by HKCC / SEOCH issuing a Direct Debit Instruction or Direct Credit Instruction to the Settlement / Designated Bank as applicable.
For each settlement currency, a HKCC / SEOCH Participant is required to open bank accounts at the Settlement / Designated Banks appointed by HKCC / SEOCH for money settlement purpose.
Moreover, each HKCC / SEOCH Participant must execute the uniform Direct Debit Mandates to its Settlement / Designated Bank authorising the Settlement / Designated Bank to release funds to HKCC / SEOCH’s account upon receipt of direct debit instructions from HKCC / SEOCH. The Direct Debit Mandates will become effective only when the Settlement / Designated Bank confirms its acceptance. Direct Debit Mandates are available from HKCC / SEOCH.