HK Bourse Plans to Allow Multiple Clearing Banks for Cash Trades

(Bloomberg) — Hong Kong’s stock exchange is planning to allow cash market traders to use multiple banks to settle transactions, a move that will help diversify risks and may also mitigate the dangers posed by any escalation in sanctions by Washington and Beijing.

Hong Kong Exchanges & Clearing Ltd. is drawing up plans to allow traders to sign up multiple clearing banks, up from the current one, according to people familiar with the matter who asked not to be identified discussing internal plans. A change would follow a similar relaxation in futures clearing rules in March. Clearing banks settle transactions between two parties.