HKEX and the Hong Kong Monetary Authority (HKMA) have launched a pilot program to provide digital payment solutions for after-hours trading of derivative products.

On June 18th, HKEX and the Hong Kong Monetary Authority announced the launch of a joint pilot project to study providing new digital payment solutions during the post-closing trading hours in the derivatives market. This pilot project aims to optimize the Hong Kong capital market and meet the growing demand for post-closing trading hours. HKEX and the Monetary Authority are studying the introduction of "digital Hong Kong dollars" - a wholesale central bank digital currency (CBDC) operating 24/7 - for paying the pre-margin for post-closing trading hours to enhance the risk management capabilities of the derivatives market outside of banking hours while maintaining existing operations unchanged. Compared to the current pre-margin payment arrangements, the pilot project will offer greater flexibility and efficiency. Currently, settlement participants must submit their applications to the Hong Kong Futures Clearing Corporation (Futures Clearing House) before 3 p.m. to deposit pre-margin, which can then be used for post-closing trading hours. HKEX is inviting settlement participants under Futures Clearing House to voluntarily participate in real trading trials. The wider application of real trading trials and related schemes will be subject to regulatory approval, market readiness, and other relevant factors. HKEX's Chief Operating Officer Li Baiyan said: "We are delighted to collaborate with the Monetary Authority on this latest cooperation to further enhance the convenience of Hong Kong's capital market infrastructure. Through the study of central bank digital currency, we hope to provide more flexible and timely payment options outside of regular trading hours, addressing long-standing operational pain points in the industry. This pilot project reflects HKEX and the Monetary Authority's joint commitment to promoting innovation and enhancing market resilience, solidifying Hong Kong's position as a leading international financial center." HKMA's Deputy Chief Li Da Zhi said: "As Hong Kong's financial infrastructure continues to evolve to meet growing market demands, the Monetary Authority is committed to promoting innovation to enhance efficiency and resilience. This joint pilot project with HKEX, introducing the use of the "digital Hong Kong dollar" for pre-margin payments during post-closing trading hours, not only demonstrates the application of wholesale CBDC in a real market environment but also highlights our close cooperation with industry stakeholders in driving financial innovation."