The
The link would support DvP settlement of the HKD sale and repurchase (repo) transactions using Japanese Government Bonds (JGB) as collateral. It helps eliminate settlement risk by ensuring simultaneous delivery of HK dollars in
The DvP link, by providing a settlement infrastructure, would facilitate banks in conducting cross-currency repo transactions to obtain the HKD funds. Such a funding tool can prove to be useful, particularly in times of stress, as banks (especially foreign banks) may mobilise their foreign currency debt securities for use in
The link is operated by
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