J.P. Morgan Worldwide Securities Services has today announced it will launch an innovative repo financing collateral management platform, which has been developed in partnership with the Hong Kong Monetary Authority (“HKMA”), with a view to enhancing financial stability and providing secured channels for liquidity provisions to the financial markets in Hong Kong.
The new repo financing program will facilitate repo financing transactions between members of Hong Kong’s Central Moneymarkets Unit (“CMU”) and international financial institutions. The program enhances services currently provided to CMU members who will be able to accept a broad spectrum of international securities lodged with J.P. Morgan and other international securities depositaries as collateral. Additionally, international financial institutions, by entering into repo financing transactions with CMU members, will obtain access to liquidity for offshore CNY, EUR, HKD and USD in Hong Kong.
To support this new program, J.P. Morgan has developed and will launch an innovative collateral management solution. J.P. Morgan will leverage its leading edge, efficient and scalable platform to efficiently manage the end-to-end flow of repo activity between CMU members and international financial institutions operating regionally or anywhere around the world.
Kirit Bhatia, head of Technical Sales, Asia ex-Japan, J.P. Morgan Worldwide Securities Services, said: “We are delighted to have partnered with the Hong Kong Monetary Authority for this important step in the development of Hong Kong’s capital markets infrastructure. This collaboration is testament yet again to J.P. Morgan’s continued leadership in delivering truly global securities financing and collateral management solutions.”
Esmond Lee, executive director, Financial Infrastructure Department, Hong Kong Monetary Authority, added: “With the launch of this repo financing program, we have taken a step forward in the development of Asia’s capital markets. Hong Kong will certainly benefit since this will help provide more local liquidity to market players in a secured manner and contribute to enhancing the financial stability of Hong Kong.”
