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Third Party Clearing by HKSCC General Clearing Participants

An Exchange Participant (EP) of The Stock Exchange of Hong Kong Limited (SEHK) who trades on SEHK has the option to choose to become a clearing participant in CCASS or outsource its clearing functions to General Clearing Participant(s) (GCP) who provides clearing services to EPs. Under Third Party Clearing (TPC), an EP without a clearing participantship in CCASS is referenced as a Non-Clearing Participant (NCP). An EP who is an (i) NCP or (ii) a Clearing Participant (CP) who is not a China Connect Clearing Participant (CCCP) and who has entered into a Clearing Agreement with a GCP for the clearing of its China Connect Securities Trades is referenced as a Non-China Connect Clearing Participant (NCCCP). A NCP/ NCCCP has to maintain a valid, blinding and effective Clearing Agreement with its GCP pursuant to which that GCP agrees to clear the contracts of the NCP/ NCCCP. For more details, please refer to:

Operational Model of TPC in Securities Market

Documents/ Forms required for Change of Participantship of HKSCC and Clearing Arrangement are as follows:

Custodian/General Clearing Participantship Application Notes

Change of Clearing Status

Change of Participantship
of HKSCC*

Change of Clearing Relationship

Termination of Clearing Relationship  Application of Clearing Relationship (China Connect)

From
DCP to
NCP

From Custodian
to GCP

From
DCP
to
GCP

From
GCP to
DCP

Change of GCP appointment

Termination of GCP appointment  Application of NCCCP

Relevant Application Forms:

   
1.

Notice of Termination of Participation in CCASS

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2.

Form 1H - Application for Change
of Participantship of HKSCC

Explanatory Notes (EN1H)

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3.

Form 1K - Notification of Bank Account Information for Receiving IPO Brokerage

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4. Form 11 - Notification of Execution of Clearing Agreement and Change of Clearing Relationship 

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5.

Form 12 -Notification of Termination of Clearing Agreement

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6. Form 23 - Application Form for (1) the appointment / termination of a GCP for the clearing and settlement of Clearing Agency Transactions; and (2) the designation / removal of designation of the set(s) of broker numbers to be attached to Exchange Trades to be cleared and settled by a GCP
(Applicable to the Appointment / Termination of Multiple Clearers)

       

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7.

CCASS / CCMS SDNet Line Service Notification Form for HKSCC / HKCC / SEOCH Participants / HKSCC Designated Banks - Cancellation

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8.

Authorization To HKSCC on Causing Endorsements to be Made on Instruments of Transfer as Selling Broker's Agent


Explanatory Notes

Appendix I Appendix II Appendix III

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9.

Direct Clearing Participant Agreement

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10.

General Clearing Participant Agreement

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11.

Deed of Charge Relating to SEOCH Collateral[1]

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12.

Mandate Authorising SEOCH to transfer collateral and settlement amount to HKSCC[1]

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Supporting Documents:

   
1.

An Operations and Risk Control Plan
(Please refer toEN1H)

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2.

A certified true copy of the Financial Return submitted to the Securities and Futures Commission together with the management accounts (to be made up to a date within one month from the date of application)

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3.

Board Resolution

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*Remark: With respect to any request for a change in participant's status, it should be noted that a separate review will be conducted according to the admission criteria of the participantship under application.

[1]Applicable to those NCP who wishes to appoint a CCASS GCP to clear and settle Exercised Options Trade (EOT) in CCASS.

DCP = Direct Clearing Participant
NCP = Non-clearing Participant
NCCCP = Non-China Connect Clearing Participant
GCP = General Clearing Participant

If a NCP wants to become a DCP or GCP of HKSCC, please refer to the “Explanatory Notes for Application for Participantship” and “Admission Criteria and Operational Requirements for Becoming a Participant of HKSCC” for documents/forms required.

For the current list of GCP of HKSCC, please refer to the following link:

List of HKSCC General Clearing Participants

Frequently Asked Questions



Updated 24 Jun 2024