Hong Kong: Enhancement of settlement arrangement for multi-counter eligible securities
Clearstream Banking1 informs clients about an enhancement of settlement arrangement for multi-counter eligible securities in Hong Kong, effective
30 June 2025
The Hong Kong Securities Clearing Company Limited (HKSCC) has announced the adoption of a single tranche multiple counter arrangement (the “Enhancement”). The introduction of the Enhancement aims to eliminate the need for the manual inter-counter transfer of multi-counter eligible securities in Central Clearing and Settlement System (CCASS) and enhance the existing settlement arrangement.
With effect from the launch date, a single ISIN will be adopted for multiple trading counters of the same multi-counter eligible security. Securities settlement of multi counter eligible securities in CCASS will be executed using the ISIN of the HKD counter.
To facilitate the implementation of recording all activities and holdings that are related to multi-counter eligible securities under their respective domain settlement counters, the HKSCC will automatically execute this conversion in CCASS on Saturday 28 June 2025.
Impact on clients
- Clearstream Banking will convert held-free holdings of all multi-counter eligible securities that are impacted by the CCASS conversion on 30 June 2025. Clients will receive settlement confirmation reports (that is, MT544 and MT546).
- Clearstream Banking will transfer inflight corporate action instructions and entitlement positions of the multi-counter eligible securities that are impacted by the CCASS conversion on 30 June 2025. Clients will receive corporate action notifications in due course.
- Clearstream Banking strongly advises clients to instruct using the HKD counter ISIN for requested settlement date 30 June 2025 and later and to inform the counterparty to do the same to avoid settlement delays.
Clients must use the Immediate Release flag “IREL” for domestic instructions, this will allow instructions to be released to the market on 30 June 2025. - From 30 June 2025, clients must use the HKD counter ISIN in their corporate actions and settlement instructions to Clearstream Banking. The previous ISIN codes prior to the CCASS conversion will be closed and will not be in use.
Handling of pending instructions on 27 June 2025
- For instructions that have been matched for requested settlement date on 30 June 2025, Clearstream Banking will convert the instructions on the multi-counter eligible securities that are impacted by the CCASS conversion on 30 June 2025.
Clearstream Banking will cancel clients’ existing instructions. Clients will receive the relevant settlement reports (that is MT54X) on the converted transactions with the HKD counter ISIN once the instructions have been settled. - Clearstream Banking will cancel unmatched instructions for requested settlement date on 30 June 2025. Clients should re-instruct using the HKD counter ISIN and inform counterparties to do the same to avoid settlement delay.
Further information
The list of multi-counter securities involved in the migration can be found on the HKSCC website.
Please refer to the attached multi-counter stock code and ISIN mapping for eligible securities list in-scope for enhancement.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG clients using Creation accounts), registered office at Mergenthalerallee 61, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.