Renminbi RTGS reaches RMB250 billion a day, says Hong Kong-London forum

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The daily turnover in Hong Kong’s renminbi (RMB) Real Time Gross Settlement (RTGS) system, which serves the global RMB market, has reached RMB250 billion, according to data released by the London-Hong Kong Forum, which is meeting in London this week.

Banks in London and Hong Kong have made use of the extended operating hours of the RTGS system in Hong Kong by extending their internal cut-off times for processing RMB transactions with their own clients and other banks. The forum said average turnover in late trading hours had added an additional RMB2 billion to daily turnover. A further development that was noted by the forum was that eight banks have a cross-border collateral management system – which was developed by Central Moneymarkets Unit (CMU) at the Hong Kong Monetary Authority (HKMA), and JPMorgan and Euroclear – with the first RMB repo executed on Monday. The CMU is aiming to launch a similar service on the Clearstream platform within the next four months. The meeting was attended by senior representatives of the London and Hong Kong offices of 10 banks, namely Barclays, Bank of China, China Construction Bank, Citi, Deutsche Bank, HSBC, Industrial and Commercial Bank of China, JPMorgan, Royal Bank of Scotland and Standard Chartered Bank. The UK Treasury and the HKMA acted as facilitators. The Bank of England and Financial Services Authority attended as observers.