Hong Kong Exchanges and Clearing Limited (HKEX) and the Hong Kong Monetary Authority (HKMA) have launched a joint pilot project to test an e-HKD after-hours trading payment solution for the derivatives market.

The initiative explores using a wholesale central bank digital currency (CBDC) that operates around the clock to settle advance margin payments.

This setup aims to improve risk management capabilities outside standard banking hours without disrupting existing operational workflows.

Clearing participants must submit advance margin deposit requests by 3:00 p.m. under the current system so that HKCC counts their funds for the upcoming evening session.

“By exploring the use of CBDC, we aim to provide a more flexible and timely payment option outside of regular business hours, and address longstanding operational pain points in the industry,”

said Vanessa Lau, Chief Operating Officer, HKEX.

HKEX is inviting members of the HKFE Clearing Corporation (HKCC) to join the initial real-value trials on a voluntary basis.

“The joint pilot with HKEX to enable advance margin payments for AHT using e-HKD demonstrates a wholesale application of CBDC in a live market environment,”

said Howard Lee, Deputy Chief Executive, HKMA.

Wider market adoption of the digital payment solution will depend on regulatory clearance, market readiness, and the results of the initial testing phase.

Featured image credit: Edited by Fintech News Hong Kong, based on image by noob via Magnific