Hong Kong Exchanges and Clearing (HKEX) has announced a multi-year enhancement programme aimed at modernising its post-trade systems for the cash equities market. The upgrades, set to roll out progressively from mid-2025, are designed to prepare the exchange for a potential shift to a T+1 settlement cycle by the end of 2025.
The initiative will focus on HKEX’s Orion Cash Platform (OCP), a key system supporting Hong Kong’s cash market. Planned enhancements include real-time data processing, automated post-trade report downloads, and real-time settlement instruction matching. The exchange emphasises that these upgrades aim to improve efficiency, reliability, and automation within its post-trade infrastructure.
While the enhanced systems will be technically capable of supporting a T+1 settlement cycle by late 2025, HKEX noted that any actual changes to the settlement cycle would require extensive market consultations.
Futureproofing
Richard Leung, HKEX’s group chief information officer, highlights the adoption of modular architecture in the platform’s development. This approach, he says, allows for flexibility in introducing new features while facilitating market adoption. “Platform development is a core part of HKEX’s strategy to futureproof its business and its markets,” Leung states, adding that collaboration with market participants will be central to the enhancement process.
During the transition, HKEX will continue to provide essential post-trade services through its Central Clearing and Settlement System (CCASS). The exchange also plans to engage with market participants to address how the new OCP features will impact CCASS operations.
Bonnie Y Chan, CEO of HKEX, emphasises the long-term goal of the programme: ensuring Hong Kong’s capital markets remain competitive and resilient. “We are pleased to launch this modernisation programme to develop capabilities for real-time and more efficient post-trade services,” she says, underscoring HKEX’s commitment to investing in technology and market infrastructure.
