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HKEX has been actively enhancing its clearing services with several key initiatives aimed at improving efficiency, managing risk, and supporting market development. Here’s a breakdown of some recent and upcoming enhancements:
Orion Cash Platform (OCP) Enhancements:
* Multi-year Post-Trade Services Upgrade: Starting in mid-2025 and continuing through 2027, HKEX is rolling out a series of upgrades to its cash market post-trade infrastructure under the OCP.
* Real-time Processing: These enhancements will enable real-time transmission and processing of trade data, related positions, and reference data.
* Automated Reporting: New features will include automated post-trade report downloads and information exchange.
* Real-time Settlement Instruction Matching: The platform will support real-time matching of settlement instructions, streamlining the process.
* T+1 Settlement Readiness: HKEX’s post-trade systems are on track to be technically ready to support a T+1 settlement cycle by the end of 2025, although any actual shift to T+1 will depend on market consultation.
Stock Settlement Fee Structure Adjustments:
* New Ad Valorem Rate: Effective June 2025, the minimum and maximum components of the stock settlement fee will be removed, replaced by a new ad valorem rate of 0.0042% for each trade.
* Cost Neutrality: This new structure is designed to be cost-neutral to the market overall, creating a more equitable fee structure across all trade sizes.
* Benefit to Smaller Trades: Approximately 77% of trades between 2019 and 2024 would have benefited from lower fees under this new structure.
* ETP Market Maker Fee Adjustment: The stock settlement fee for eligible Exchange Traded Product (ETP) market-making trades will be set at a lower rate of 0.0020%, also without minimum or maximum fees, to support liquidity.
Enhancements in Connect Programs:
* Swap Connect Enhancements: In May 2024, OTC Clear implemented solo compression, CNY back-dated trades, and International Money Market trades for Swap Connect, providing more flexibility for international investors managing RMB interest rate risk.
* Stock Connect Evolution: Over the past decade, Stock Connect has seen improvements in settlement efficiency with the introduction of Special Segregated Account (SPSA) Services and Synapse. Trading calendars have also been enhanced to facilitate trading on all shared trading days between Hong Kong and Mainland China.
Derivatives Market Position Limit Enhancements:
* Increased Single Stock Option Limits: Effective December 2023, single stock option position limits were increased to a five-tier model, with a maximum of 250,000 contracts.
* Revised Single Stock Futures Limits: The position limit model for single stock futures was also revised to a five-tier model, with net position limits up to 25,000 contracts.
* Increased CNH Contract Limits: The combined position limits for USD/CNH futures and options, Mini USD/CNH futures, and CNH/USD futures were significantly increased.
Other Notable Developments:
* Orion Derivatives Platform (ODP): HKEX is developing a new derivatives platform, expected to launch in 2028, to offer enhanced trading, clearing, and risk management capabilities, potentially including near 24-hour trading.
* FINI (Fast Interface for New Issuance): Launched in November 2023, FINI digitalizes IPO settlement processes, shortening the time between pricing and trading to T+2.
* HKD-RMB Dual Counter Model: Introduced in June 2023, this allows designated shares to be traded and settled in both HKD and RMB.
* Memorandum of Understanding with CMU OmniClear: In March 2025, HKEX signed an MOU to explore cooperation in enhancing post-trade securities infrastructure, including cross-asset class efficiencies and expanded use of Mainland bonds as collateral.
* Enhancement of Settlement Arrangement for Multi-counter Eligible Securities: HKEX is enhancing the settlement arrangement for multi-counter eligible securities in CCASS by adopting a single tranche multiple counter arrangement to improve scalability and eliminate the need for inter-counter transfers.
These enhancements demonstrate HKEX’s commitment to modernizing its infrastructure, improving market efficiency, and providing robust clearing services to support its growing and diverse markets. The focus on technology upgrades, fee structure adjustments, and expanding connectivity initiatives aims to strengthen Hong Kong’s position as a leading international financial center.

Video courtesy of Interactive Brokers

Video courtesy of Interactive Brokers..