Clearstream opens settlement system to Chinese Renminbi
20 September 2010 Luxembourg
Image: Shutterstock
Chinese Renminbi (RMB) held outside mainland China are eligible for settlement in Clearstream
BOC International Holdings Limited (BOCI) is the first issuer and Standard Chartered Bank (Hong Kong) Limited is a key issuer to launch RMB notes via Clearstream RMB bonds issued via the Central Moneymarkets Unit in Hong Kong are eligible for settlement in Clearstream
Clearstream expands its existing link to Hong Kong: As of 27 September 2010, the Chinese Renminbi (RMB) held outside of mainland China will become a full settlement currency in Clearstream. The new offering applies for RMB held in Clearstream's Cash Correspondent Bank. BOC International Holdings Limited (BOCI) will be the first market participant to issue securities in RMB - Standard Chartered Bank (Hong Kong) Limited will be another key issuer - that can be safekept by an International Central Securities Depository (ICSD), under the new regulation.
Lu Rong, Head of Financial Products Division at BOCI, said: "We are pleased to have RMB denominated structured products insurance via Clearstream. Being a leading Chinese investment bank, BOCI is particularly well-positioned to offer RMB-denominated investment products and risk management solutions."
Sundeep Bhandari, Regional Head Global Markets, NEA of Standard Chartered Bank (Hong Kong) Limited, said: "We are very excited to see RMB become a major settlement currency in Clearstream and believe that such technology will enable a seamless access to our strong client base, bringing tremendous RMB business opportunities to the region."
Philippe Metoudi, Head of Client Relations Asia/Pacific/Middle East/Africa at Clearstream said: "Over the 22 years that I have worked in Hong Kong, this is definitely one of the most important breakthroughs for investors. Our customers will be allowed to buy and hold RMB in Hong Kong. These developments mark a new milestone for the ongoing evolution of the Asian markets in the international financial environment. Clearstream is delighted to help facilitate the Renminbi's adoption as an international investment currency. Clearstream has had an office in Hong Kong for 20 years and is committed to further enhancing efficiencies of the Asian markets."
The new service offering, including operational deadlines, was announced to Clearstream customers on 27 August 2010.
Clearstream's network currently reaches 47 domestic markets around the globe:
30 in Europe, 5 in the Americas, 10 in the Asia Pacific region and 2 in Middle-East and Africa. It is the widest network of any ICSD and enables counterparties in local markets to efficiently settle eligible securities through Clearstream's operational hubs in Luxembourg and Singapore.
BOC International Holdings Limited (BOCI) is the first issuer and Standard Chartered Bank (Hong Kong) Limited is a key issuer to launch RMB notes via Clearstream RMB bonds issued via the Central Moneymarkets Unit in Hong Kong are eligible for settlement in Clearstream
Clearstream expands its existing link to Hong Kong: As of 27 September 2010, the Chinese Renminbi (RMB) held outside of mainland China will become a full settlement currency in Clearstream. The new offering applies for RMB held in Clearstream's Cash Correspondent Bank. BOC International Holdings Limited (BOCI) will be the first market participant to issue securities in RMB - Standard Chartered Bank (Hong Kong) Limited will be another key issuer - that can be safekept by an International Central Securities Depository (ICSD), under the new regulation.
Lu Rong, Head of Financial Products Division at BOCI, said: "We are pleased to have RMB denominated structured products insurance via Clearstream. Being a leading Chinese investment bank, BOCI is particularly well-positioned to offer RMB-denominated investment products and risk management solutions."
Sundeep Bhandari, Regional Head Global Markets, NEA of Standard Chartered Bank (Hong Kong) Limited, said: "We are very excited to see RMB become a major settlement currency in Clearstream and believe that such technology will enable a seamless access to our strong client base, bringing tremendous RMB business opportunities to the region."
Philippe Metoudi, Head of Client Relations Asia/Pacific/Middle East/Africa at Clearstream said: "Over the 22 years that I have worked in Hong Kong, this is definitely one of the most important breakthroughs for investors. Our customers will be allowed to buy and hold RMB in Hong Kong. These developments mark a new milestone for the ongoing evolution of the Asian markets in the international financial environment. Clearstream is delighted to help facilitate the Renminbi's adoption as an international investment currency. Clearstream has had an office in Hong Kong for 20 years and is committed to further enhancing efficiencies of the Asian markets."
The new service offering, including operational deadlines, was announced to Clearstream customers on 27 August 2010.
Clearstream's network currently reaches 47 domestic markets around the globe:
30 in Europe, 5 in the Americas, 10 in the Asia Pacific region and 2 in Middle-East and Africa. It is the widest network of any ICSD and enables counterparties in local markets to efficiently settle eligible securities through Clearstream's operational hubs in Luxembourg and Singapore.
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