New repo financing collateral management platform for Hong Kong

Hong-KongJP Morgan Worldwide Securities Services plans to launch a repo financing collateral management platform, which has been developed together with the Hong Kong Monetary Authority.

In a statement, JP Morgan said its aim was to enhance financial stability and provide secured channels for liquidity provisions to the financial markets in Hong Kong.

The programme will facilitate repo financing transactions between members of Hong Kong’s Central Moneymarkets Unit and international financial institutions. Furthermore, JP Morgan has developed and will launch a collateral management solution.

Its statement said the programme’s aim was to efficiently manage the end-to-end flow of repo activity between members of the central money markets unit and international financial institutions operating regionally or anywhere around the world.

Esmond Lee, executive director, financial infrastructure department, at the Hong Kong Monetary Authority, said this furthered the Asian 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,” he said.

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