The Hong Kong Stock Exchange has announced a tentative launch date of 19 June 2023 for its HKD-RMB Dual Counter Model, which will allow the trading of securities in both Hong Kong dollars and Chinese yuan. The launch is subject to market readiness, and the exchange is currently accepting applications for Dual Counter Market Maker permits. The exchange will announce the list of approved DCMMs and eligible securities before the launch date. DCMMs will need to comply with relevant obligations and requirements set out by the exchange, and can claim stamp duty exemption if they meet the criteria under the DCMM Stamp Duty Exemption Programme. The trading arrangements for Dual Counter Securities have been summarized in an appendix, which includes details on trading currency, stock code, trading platform, trading sessions, order types, trading methods, quotation/price rules, spread table, inter-counter trading and short selling. The volatility control mechanism and payment currency of transaction fees are also covered. Clearing, settlement, and depository arrangements will largely follow existing procedures, except Clearing and Settlement of DCS, Inter-counter Transfer of DCS, Depository Services in relation to DCS and CCASS Fees and Charges. CPs are advised to review their liquidity and designated settlement account to ensure readiness to handle settlement in RMB. The exchange website contains updated information on the model and frequently asked questions. CPs are encouraged to participate in testing and practice sessions to ensure readiness for the launch of the Dual Counter Model.
Resource: https://www.hkex.com.hk/-/media/HKEX-Market/Services/Circulars-and-Notices/Participant-and-Members-Circulars/SEHK/2023/CT06423E.pdf
