To do cross-border e-commerce, you need to contact the settlement systems of various countries. So what are the settlement systems? What are their contents?
1. US dollar settlement system
To improve the settlement efficiency of US dollar transactions conducted in Hong Kong and other regional economies and to eliminate settlement risks arising from foreign exchange transactions involving two currencies in different time zones, the HKMA has launched the US dollar clearing system in Hong Kong. The system became operational in December 2000. The US dollar clearing system uses the same infrastructure as the Hong Kong dollar real-time gross settlement system, providing a number of advanced and sophisticated clearing and settlement functions. The main functions of the US dollar clearing system include instant payment settlement of US dollar payment items, delivery-versus-cash settlement of US dollar stocks, simultaneous delivery and settlement of US dollar/Hong Kong dollar, US dollar/RMB and euro/US dollar foreign exchange transactions, and US dollar check settlement. The system is also connected to the Central Moneymarkets Unit to provide cash-for-delivery settlement services for US dollar bonds and repurchase agreement transactions.
2. Hong Kong dollar settlement system
In order to enable Hong Kong dollar interbank payment transactions to be settled in a secure and efficient manner, the HKMA launched the Hong Kong dollar clearing system in 1996. Interbank payment transactions are settled using real-time payment settlement. In addition, the system provides a number of advanced and sophisticated settlement and delivery functions. The main functions include delivery-versus-payment settlement of Hong Kong dollar stocks, simultaneous delivery and settlement of foreign exchange transactions between RMB/HKD, USD/HKD and EUR/HKD, and Hong Kong dollar cheque settlement. The system is also linked to the Central Moneymarkets Unit to provide cash-versus-delivery settlement services for Hong Kong dollar bonds and repurchase agreement trading services.
3. Euro Settlement System
The Euroclear system was launched in Hong Kong in April 2003 with the aim of improving the settlement efficiency of Euro transactions within the Asian time zone and reducing the related settlement risks. The technology used by the euro settlement system is similar to that of the Hong Kong dollar, US dollar and RMB settlement systems. Its main functions include instant payment settlement of euro payment items, and simultaneous delivery of euro/US dollar, euro/RMB and euro/Hong Kong dollar foreign exchange transactions. The system is also linked to the Central Moneymarkets Unit to provide cash-for-deal settlement services for Eurobonds and repurchase agreement transactions.
4. RMB Settlement System
In order to improve the settlement efficiency of RMB transactions conducted in Hong Kong and to meet the settlement needs after the expansion of RMB business, the RMB Settlement System was established in June 2007 by enhancing the functions of the RMB Settlement System. The RMB clearing system uses the same infrastructure as the Hong Kong dollar real-time gross settlement system, providing a number of advanced and sophisticated clearing and settlement functions. The main functions of the RMB settlement system include real-time payment settlement of RMB payment items, cash-on-delivery settlement of RMB stocks, simultaneous delivery and settlement of RMB/HKD, USD/RMB and EUR/RMB foreign exchange transactions, and RMB cheque settlement. The system is also connected to the Central Moneymarkets Unit to provide cash-versus-delivery settlement services for RMB bonds and repurchase agreement transactions.
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