Building upon the capability of the RTGS system, the HKMA has extended the Delivery versus Payment facility for debt securities transaction to share transactions.
The HKMC debt securities were well received by financial institutions, institutional investors and retail investors.
The HKMA continued to expand the network of bilateral linkages between the CMU and other central securities depositories (CSDs) in the region to facilitate cross-border trading and holding of debt securities and to reduce the settlement risk.
Doubts about the value and health of Fannie and Freddie debt securities held by policy Banks and major financial institutions throughout the world have contributed to drops in global markets.
With the exception of Japan, due to surpluses run up by the major economies, they are also issuing less public debt securities.
In return, the SPV issues new debt securities to the bank, guaranteed by the government.
Underwriter An intermediary between an issuer of debt securities and the investors.
The Securities Lending and Borrowing Programme for CMU private sector debt securities has enhanced the liquidity of private sector debt securities in the secondary market through the market-making process.
The linkage of domestic depositories will facilitate the clearing of cross border trades in debt securities in Asia. It will enlarge the investor base and broaden domestic debt markets.
Despite its short history, the HKMC has already established a strong presence in the mortgage and debt securities markets in Hong Kong.
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