Central Securities Depositories
Hong Kong Securities Clearing Company
Central Clearing And Settlement System (CCASS)
Central Monetary Unit (CMU)
T+2 for Equities
varies for Bonds and Cash
For equities, the T+2 settlement cycle requires prepayment for cash to achieve T+2, otherwise the cash element occurs one day later. Exchange trades are settled in the Central Clearing And Settlement System (CCASS) either through a Continuous Net Settlement (CNS) system or as isolated trades. For CNS trades, Hong Kong Securities Clearing Company Limited (HKSCC) acts as central counterparty and is responsible for settlement to both parties to the trade. For isolated trades, HKSCC only facilitates the settlement between buyer and seller, with each bearing counterparty risk.
Key terms defined in our glossary:
Central Securities Depository
BIS Model 1
BIS Model 3
The above information is written as a general guide only and is subject to change. Please refer to our 'Terms' page for more details.