HK Compliance Report ISSA Recommendations 2000

ISSA - International Securtities Services Association

Compliance to the ISSA Recommendations 2000

Market: Hong Kong

Status: October 2, 2001

Recommendation 1
Recommendation 2
Recommendation 3
Recommendation 4

Recommendation 5
Recommendation 6
Recommendation 7
Recommendation 8

Market selection

Recommendation 2

Securities Systems must allow the option of network access on an interactive basis. They should cope with peak capacity without any service degradation, and have sufficient standby capabilities to recover operations in a reasonably short period within each processing day.

1. How often, over the last twelve months, has the depository been required to:

Change its published settlement timetable?
None.

Extend the time of opening for settlement input by users?
None.

Delay start of day processing?
None.

2. Does the depository operate real time or multiple batch processing for settlement? HKSCC operates multiple batch processing for settlement and conducts four batch settlement runs (10:30 a.m., 12:00 p.m., 2:00 p.m. and 3:45 p.m.) on each settlement day. Real Time DvP ("RDP") settlement service is also provided by CCASS which utilises the local RTGS system (from the banking sector) for payment execution. However, RDP can only be triggered after the settlement instructions have been matched during the scheduled batch matching runs.

3. Does the depository allow interactive communication (on line real time) with its users, enabling settlement input and amendment? Exchange trades executed through the Stock Exchange of Hong Kong ("SEHK") are captured by CCASS automatically from SEHK's trading system AMS/3.

Participants (other than investor participants) can input and amend Settlement Instructions (SIs) via the CCASS terminals to transfer securities among themselves. SIs are matched at scheduled times and normally settled during the batch settlement runs. The delivering participant can choose to settle an SI by inputting Delivery Instructions on line, which will be processed immediately by CCASS.

4. Has the depository ever failed to recover an outage within the day or failed to start processing runs for a whole day; and, if so, when did that failure arise and what steps have been taken to prevent a similar event in the future? No. HKSCC has not experienced any of these failures.

1.	How often, over the last twelve months, has the depository been required to:
	Change its published settlement timetable?	None.
	Extend the time of opening for settlement input by users?	None.
	Delay start of day processing?	None.
2.	Does the depository operate real time or multiple batch processing for settlement?	HKSCC operates multiple batch processing for settlement and conducts four batch settlement runs (10:30 a.m., 12:00 p.m., 2:00 p.m. and 3:45 p.m.) on each settlement day. Real Time DvP ("RDP") settlement service is also provided by CCASS which utilises the local RTGS system (from the banking sector) for payment execution. However, RDP can only be triggered after the settlement instructions have been matched during the scheduled batch matching runs.
3.	Does the depository allow interactive communication (on line real time) with its users, enabling settlement input and amendment?	Exchange trades executed through the Stock Exchange of Hong Kong ("SEHK") are captured by CCASS automatically from SEHK's trading system AMS/3. Participants (other than investor participants) can input and amend Settlement Instructions (SIs) via the CCASS terminals to transfer securities among themselves. SIs are matched at scheduled times and normally settled during the batch settlement runs. The delivering participant can choose to settle an SI by inputting Delivery Instructions on line, which will be processed immediately by CCASS.
4.	Has the depository ever failed to recover an outage within the day or failed to start processing runs for a whole day; and, if so, when did that failure arise and what steps have been taken to prevent a similar event in the future?	No. HKSCC has not experienced any of these failures.