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The following is issued on behalf of the Hong Kong Monetary Authority:
Bank Negara Malaysia and the Hong Kong Monetary Authority (HKMA) announced today (October 29) the implementation of cross-border delivery-versus-payment ("DvP") link between Hong Kong's US dollar real time gross settlement (RTGS) system and Malaysia's Ringgit RTGS system on October 29, 2007.
The DvP link will help eliminate settlement risk of US dollar bonds issued and traded in Malaysia by ensuring simultaneous delivery of US dollars in Hong Kong and US dollar bonds in Malaysia. The DvP settlement services provide the necessary settlement infrastructure to support potential issuance of US dollar bonds in Malaysia, as part of the initiatives to promote Malaysia as an Islamic financial centre and Hong Kong as an international financial centre. The new link builds on the success of the payment-versus-payment ("PvP") link between Hong Kong's US dollar RTGS system and Malaysia's Ringgit RTGS system that was established in November 2006. The launch of this DvP link further signifies the co-operation between the HKMA and Bank Negara Malaysia.
Similar to the PvP link, the DvP link is operated in Malaysia by Bank Negara Malaysia and in Hong Kong by Hong Kong Interbank Clearing Limited, which operates the interbank clearing systems in Hong Kong, and is jointly and equally owned by the HKMA and the Hong Kong Association of Banks.
For further enquiries, please contact:
Hong Kong Monetary Authority
Thomas Chan, Senior Manager (Press), at (852)2878 1480
Bank Negara Malaysia
Abu Hassan Alshari Yahaya, Director (Corporate Communications),
at (603) 2691 9335
Ends/Monday, October 29, 2007
Issued at HKT 17:16
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