Hong Kong Acting Secretary for Financial Services and the Treasury Christopher Hui said in a written reply to the Legislative Council that Hong Kong Exchanges and Clearing (HKEX) is studying the use of blockchain and artificial intelligence to improve post-trade matching, clearing and settlement. The work is tied to a planned move in Hong Kong’s cash equities market from a T+2 settlement cycle to T+1.
Hui said HKEX aims to publish consultation conclusions and set out implementation arrangements and a timetable within this year. The T+1 model is expected to be introduced as early as the fourth quarter of 2027. He also said HKEX will leave enough preparation time for the market and study tools that can simplify processing, with support for system upgrades aimed in particular at small and medium-sized brokers.
The government will also ask HKEX and the Investor and Financial Education Council to step up public education for retail investors so they understand how T+1 settlement could affect fund transfers and margin top-up requirements, according to a Hong Kong government press release cited by Techub.
Hong Kong Acting Secretary for Financial Services and the Treasury Christopher Hui said in a written reply to the Legislative Council that Hong Kong Exchanges and Clearing (HKEX) is studying the use of blockchain and artificial intelligence to improve post-trade matching, clearing and settlement, with the stated aim of raising market efficiency and reducing systemic risk.
The work is being considered alongside a reform that would shorten the settlement cycle in Hong Kong’s cash equities market from T+2 to T+1. Hui said HKEX is targeting the release of consultation conclusions within this year, together with implementation arrangements and a timetable. T+1 settlement could be introduced as early as the fourth quarter of 2027.
Tools under study for market participants
Hui said HKEX will leave sufficient preparation time for the market and is also studying processing tools that could simplify workflows and help market participants complete system upgrades, especially small and medium-sized brokers.
Retail investor education also planned
The government will also push HKEX and the Investor and Financial Education Council to strengthen public education for retail investors so they understand the impact that T+1 settlement may have on fund transfers and margin top-up requirements.
The information was cited from a Hong Kong government press release and carried by Techub.
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