In order to become a Settlement Bank, the bank has to fulfill the following criteria:
- Being a licensed bank under Hong Kong Monetary Authority and with Tier 1 capital under the Banking (Capital) Rules of not less than HK$390,000,000 or such other level as prescribed by HKCC/SEOCH from time to time ;
- Able to communicate with HKCC / SEOCH via SWIFT automatically; and
- Possess competitive pricing and high utilization rate by the participants
The above criteria will also be applied to Designated Bank except for the credit rating requirement. Moreover, a Settlement / Designated Bank is required to enter into a standard bank agreement with HKCC / SEOCH which set out the settlement requirements.
Application for becoming a Settlement / Designated Bank has to be in writing with explanation on how the admission criteria can be fulfilled with relevant supporting documents, where appropriate. The application should be submitted to:
Clearing Operations
HKFE Clearing Corporation Limited / The SEHK Options Clearing House Limited
30/F, One Exchange Square,
8 Connaught Place, Central, Hong Kong