Market Link Guide - Hong Kong


Key features

CSD link as defined under CSDRa


Type of link

Indirect via Citibank N.A. (Hong Kong Branch) to :

  • Hong Kong Securities Clearing Company Ltd, operating CCASS
  • Hong Kong Monetary Authority, operating the CMU system

a. CSD Regulation (EU) No 909/2014 art. 2 (29)




Hong Kong Securities Clearing Company Ltd (HKSCC)  

Hong Kong Monetary Authority (HKMA)

Citibank, N.A. Hong Kong branch


HKSCC: 7ENI1T.00000.LE.344

HKMA: Not available



HKSCC: 213800NM8ZN1F16ARD34

HKMA: Not available


Country of incorporation

Hong Kong


Account type

Omnibus account

Omnibus account

Legal Account name / account holder

Account holder: Citibank NA Hong-Kong

HKSCC: securities are registered in the name of HKSCC Nominees Limited, the common nominee

HKMA: securities are in name of the CMU member (that is, Citibank NA Hong Kong)

Citibank NA Hong Kong branch as the participant in HKSCC and HKMA does not hold a segregated account for CBL at either CSD.

Clearstream Banking S.A.

Operational arrangements

Settlement free of paymentYes  
Settlement against paymentYes 

Eligible settlement currencies:

  • CCASS: Hong Kong Dollar (HKD), Chinese Renminbi (RMB);
  • CMU: Hong Kong Dollar (HKD), Chinese Renminbi (RMB)
Settlement against payment in central bank money account of CBL/CBL customerNoCBL holds a cash account at the custodian. Against payment settlement in HKD and RMB is conducted in the HKMA payment system on the cash account of Citibank Hong Kong’s acting as the clearing party. 
Bridge settlementYes  
Shaping facilityNo 
Partial settlementNoNot market practice but is permissible with special arrangements.
Settlement penalty feesYesFailure of  stock delivery might potentially incur buy-in penalties.
Pre-matchingYes Occurs upon receipt of customers’ instructions and is subject to counterparty availability.
Back-to-back processingYes CCASS-eligible securities only.
Automatic compensationNoAdjustment is performed based on information received from the depository.
Registered securitiesYes
  • For dematerialised securities, registration takes place automatically upon settlement.
  • For physical securities, manual intervention will be required and not automatically.
Multi Market SecuritiesYesPlease refer to the Multi-securities Guide.
Lending and borrowingYes For all CMU instruments eligible in CBL.
Proxy votingYes  
Investment FundsYes CCASS-eligible funds and ETFs.
Liquidity Hub ConnectNo 
Sale and purchase of rightsYes  
Repo servicesYesInternal Repo service for Bonds and Equities (refer to Cmax Product Guide). 
Market restrictionsNo 
FTTYesStamp duty incurred.
Daily reconciliationYes 

Moment of entry of instructionsThe CSD rules do not define the moment of entry within the meaning of the Settlement Finality Directive.
Irrevocability of instructionsSettled transactions are irrevocable.
Finality of instructionsSettlement in the Hong Kong market is final upon settlement in the books of HKSCC and HKMA.

Legal arrangements

The below section is based on the legal opinion obtained by CBL that was issued on 20 February 2019.  The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.

No insolvency proceedings against the custodian


Custodian liability for negligence


Book-entry regime with in rem rights


Recognition of nominee concept


No right of retention to the custodian


Segregation of assets at the custodian


No right of use


No upper-tier attachments


Insolvency of the custodian with no impact on CBL's rights 


Shortfall pro-rated among holders

Confirmed. Local law does not specifically address shortfall issues but a shortfall shall be borne on a pro rata basis by all the relevant account holders. Local court may however implement a different allocation approach (for example, "first in, first out" approach).

Record keeping period of at least 10 yearsThere is no general requirement under local law for Custodian to maintain records of services or activities with respect to its custody business for a period of at least 10 years. A retention period of records for a period of at least seven years was agreed with the Custodian.

Settlement finality in case of insolvency