Hong Kong starts trial operations for new gold clearing system

The initiative could strengthen the city’s role as a regional gold clearing hub and offshore renminbi centre.

Hong Kong has started trial operations for its new central clearing and settlement system for gold, alongside targeted initiatives including the initial phase of Delivery Connect.

HSBC, an inaugural Direct Participant of the Hong Kong Precious Metals Central Clearing Company, said the system will allow clients to access trading, clearing, and post-trade services from the outset.

On the first day of trial operations, HSBC facilitated the first batch of trades for corporate and institutional clients through the new gold central clearing and settlement system. The bank also completed its first trade via Delivery Connect.

The bank said central clearing can improve transparency and risk management through standardised collateral, robust default procedures, and streamlined processing.