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HKEX to Roll-out New Workflow for Derivatives Position Adjustments – Regulation Asia

The enhancement will allow clearing participants to submit position adjustments requests directly at DCASS Online, replacing the existing paper-based workflow.

HKEX (Hong Kong Exchanges and Clearing) is launching an enhanced Derivatives Clearing and Settlement System (DCASS) workflow starting from Monday 13 September 2021.

The enhancement was first announced last November alongside a set of other derivatives market enhancements planned for 2021.

The DCASS service enhancement will allow clearing participants to submit their requests for position adjustments (i.e. external position transfer or position re-opening) directly at DCASS Online.

This will replace the existing paper-based workflow, which requires clearing participants to submit duly completed and signed forms to process such position adjustments.

There will be a two-week transition period from 13 to 24 September 2021 (both days inclusive) during which clearing participants can submit their requests for position adjustments by either through the existing paper-based workflow or through the enhanced workflow via DCASS Online.

Following the transition period, clearing participants experiencing technical issues can continue to submit the paper-based workflow requests, which will be treated as on-behalf-of processing services and will be subject to charges.

“Clearing participants are highly recommended to adopt appropriate operational changes and coordinate with their IT teams and/or system vendors for necessary preparation,” HKEX said.

Rule amendments to facilitate the change are set out in circulars from HKCC (HKFE Clearing Corporation) and SEOCH (SEHK Options Clearing House).