Hong Kong Exchanges and Clearing Limited (HKEX) and the Hong Kong Monetary Authority (HKMA) are pleased to announce a joint pilot project to explore a new digital payment solution for the After-Hours Trading (AHT) session in the derivatives market.

This initiative aims to enhance Hong Kong’s capital market and meet the growing market demand for AHT. In this connection, HKEX and the HKMA are exploring the use of e-HKD – a wholesale central bank digital currency (CBDC) operating on a 24/7 basis – for advance margin payments in the AHT session, enhancing the risk management capabilities of the derivatives market outside regular banking hours, whilst maintaining existing operational workflows.

This pilot project will provide more flexibility and efficiency than the existing arrangement for advance margin payments. Currently, Clearing Participants (CPs) must submit advance margin deposit requests to HKFE Clearing Corporation Limited (HKCC) by 3:00 p.m. for funds to be counted for the subsequent AHT session.

HKEX is inviting CPs under HKCC to participate in Real-Value Trial Transactions of this pilot initiative on an optional basis. The Real-Value Trial Transactions, as well as any subsequent wider adoption, are subject to regulatory approval, market readiness and other relevant considerations.

HKEX Chief Operating Officer, Vanessa Lau, said: “We are delighted to collaborate with the HKMA on this latest initiative to advance market accessibility and strengthen Hong Kong’s capital markets infrastructure. By exploring the use of CBDC, we aim to provide a more flexible and timely payment option outside of regular business hours, and address longstanding operational pain points in the industry. This project reflects the shared commitment of HKEX and the HKMA to embracing innovation, strengthening the resilience of our markets and reinforcing Hong Kong’s position as a leading international financial centre.”

HKMA Deputy Chief Executive, Howard Lee, said: “As Hong Kong’s financial infrastructure evolves to meet the growing demands of the market, the HKMA is committed to advancing innovation that enhances efficiency and resilience. The joint pilot with HKEX to enable advance margin payments for AHT using e-HKD demonstrates a wholesale application of CBDC in a live market environment, while underscoring our strong partnership with the industry stakeholders in driving financial innovation.”

More details are available on a circular published on the HKEX website.

Source: HKEX