HKMA repo financing platform has first transaction

J.P. Morgan completes Hong Kong’s first HK$ tri-party repo transaction.

This follows the launch of the Hong Kong Monetary Authority’s cross-border collateral management service last June. Other parties in the the first such trade of its kind in the city were Bank of China (Hong Kong) and Barclays Bank, 

The transaction between BOCHK and Barclays leveraged the cross-currency, cross-border and global capabilities of the programme and J.P. Morgan platforms by mobilizing U.S. treasuries against HK$ liquidity.

The HKMA repo financing programme seeks to facilitate transactions between international financial institutions and members of Hong Kong’s central money markets unit,

It connects regional liquidity with global markets by utilizing international securities as collateral and provides an efficient channel for financial institutions seeking to widen their liquidity sources in HK$, Renminbi, US$ and Euro.

A senior executive at J.P. Morgan Worldwide Securities Services, said: the transaction is an exciting milestone for Hong Kong since it points to new opportunities for local and global firms seeking to participate more deeply in the region’s rapidly developing capital markets.