Multi-Counter Eligible Securities Trading Arrangements

Multi-Counter Eligible Securities Trading Arrangements

Hong Kong Securities Clearing Company Limited (“HKSCC”) is going to enhance the settlement arrangement for Multi-counter Eligible Securities in Central Clearing and Settlement System (“CCASS”) by adopting a single tranche multiple counter arrangement (the “Enhancement”). The Enhancement will improve the scalability of trading of Multi-counter Eligible Securities such as Dual Counter Securities (“DCS”) (please refer to Q.2 below) and Exchange Traded Products (“ETP”) (please refer to Q.3 below).

For the Enhancement, multiple trading currency counters will still be available on the trading front per stock as per existing trading arrangement. However, trades of different currency counters will only be reflected under one currency counter which will be designated as the domain settlement counter (please refer to Q.4 below). In other words, market contracts for the multiple trading counters of the same Multi-counter Eligible Security will only be reflected under the domain settlement counter for subsequent post-trade processing.

The Enhancement has been launched on 30 June 2025 (Monday). For more information regarding the enhancement, please refer to the announcements from the HKEX.

Frequently Asked Questions

1.      Q: What type of securities will be cleared and settled under the Enhancement?

A: All Multi-counter Eligible Securities, e.g. DCS (please refer to Q.2 below) and multi-counter ETP (please refer to Q.3 below), will be cleared and settled under the Enhancement. Please find below examples of Multi-counter Eligible Securities for your reference:

2. Q: What is “Dual Counter Securities”? How may a Dual Counter Security under the Dual Counter Model be identified? How can investors distinguish between the two counters of a Dual Counter Security? Are there any identification in their stock codes and stock short names?

A: “Dual Counter Securities” refer to securities with HKD and RMB counters (“HKD-RMB Dual Counters”) designated by the Exchange in accordance with the Rules of the Exchange and are eligible for DCMM programme. The list of Dual Counter Securities would be published by HKEX from time to time. 

In line with the existing allocation arrangement, the stock code for the RMB counter will be a 5- digit number starting with an “8”, while a 5-digit number starting with a “0” would be assigned for the HKD counter. The last four digits of the stock codes for the two counters will normally be the same, in line with the existing allocation arrangement.

·        HKD counter - 0XXXX

·        RMB counter - 8XXXX

The stock short names for the two counters are also different. For the RMB counter, the stock short name will end with -R to indicate that the securities are traded in RMB. There will be no specific marking in the stock short name of the HKD counter. The following is an illustrative example of the stock short names:

·        HKD counter – “XYZ”

·        RMB counter – “XYZ -R”

3.    Q: What is Exchange Traded Products (“ETP”)?

A: Exchange Traded Products (ETPs) include Exchange Traded Funds (ETFs) and Leveraged and Inverse Products (L&I Products), details please refer to HKEX.

4.      Q: What is domain settlement counter?

A: The stock code of the trading counter in HKD (or in the case where a Multi-counter Eligible Security has no such trading counter, the stock code of other trading counter as designated by HKSCC from time to time) will be used as the domain stock code for recording the activities and holdings in relation to such Multi-counter Eligible Security in CCASS after the implementation of the Enhancement.

5.      Q: How does the Enhancement affect my existing multi-counter Securities positions?

A: CSBHK will carry out conversion of shareholdings in all Multi-counter Eligible Securities from other currency counters (e.g. 80388) to domain settlement counters (e.g. 388) automatically on the effect date. You can refer to the example below, which shows the shareholdings before and after the Enhancement:

6. Q: How does the Enhancement impact trading of multi-counter Securities? 
A: Trading Arrangements: There will be no change in the existing trading arrangement. Separate trading counters with different stock codes will still be made available to Multi-counter Eligible Securities for trading. Clients trading Multi-counter Eligible Securities through CSBHK will maintain consistency with existing trading arrangements. For trading of stocks in the same currency and the same counter, you can simply follow the existing buy/sell process with the respective stock codes. However, if you would like to place an inter-counter order (meaning buying in one counter and selling in another counter), you should be aware that the stock code for other counter is required to be input by yourself. For instance, if you bought shares in HKD counter with stock code “388”, and you wish to sell them in the RMB counter, then you will need to input the stock code “80388” when placing orders and vice versa.
Settlement Arrangements: After the enhancement takes effect, all trades of a Multi-counter Eligible Security will then be reflected under the domain settlement counter designated by HKSCC for clearing and settlement purposes. There will only be one stock code/ISIN3 for post trade activities in CCASS. Therefore, in CSBHK’s trading systems, all holdings of multi-counter securities will be displayed under the domain settlement counter. For example, if a client bought "80388," the holding will be shown as "388," and the displayed Buying Cost/Profit & Loss will be calculated and shown based on our reference exchange rate on that day.

7.      Q: How does the Enhancement impact money settlements?
A: There will be no offset among money positions of different currency counters. Money positions will be maintained and settled separately, so clients are required to prepare money settlement by currency.

8. Q: What are the transaction charges under of multi-counter Securities?
A: For transaction fees, prevailing charges of our securities trading services apply. For trading of HKD counter shares, the transaction charges are collected in HKD. For trading of RMB/USD counter shares, brokerage commission, stamp duty, transaction levy, HKEX Trading Fee, CCASS Stock Settlement fee, FRC Transaction Levy will be collected in equivalent RMB/USD (according to official exchange rate) as determined by us. Related fees and charges will be calculated on HKD and collected in equivalent RMB/USD.

9.  Q: Can a listed issuer remove one of the trading counters? 
A: It will be up to the decision of the issuer. If an issuer is decided to remove any trading counter, the issuer is required to agree with HKEX on the proposed timetable and the resulting trading and settlement arrangement. It is also required to inform the market of the arrangement through an announcement.

10. Q: Will dividends be paid in HKD or RMB for Multi-counter Eligible Securities? 
A: Neither SEHK nor HKSCC imposes any mandatory requirement on an issuer’s dividend policy. An issuer may decide to pay dividends in any currency. The Enhancement will not impair the shareholders’ rights or interests in any event.

11. Q: What will be the arrangement for bonus issue and/or scrip shares under the Enhancement? 
A: Clients will receive securities in the domain settlement counter, based on the shareholding of the domain settlement counter as of the relevant shareholding date in CCASS.

12. Q: After the Enhancement, how can I submit corporate action instructions/Stock transfer instructions under the Enhancement? 
A: Clients are required to submit such instructions through the domain settlement counter.

13. Q: Any special deposit and/or withdrawal arrangement applicable to the Enhancement? 
A: Only domain settlement counter will be maintained under the Enhancement. Under normal circumstances, HKD counter is the domain settlement counter, physical certificate deposit and withdrawal services will then be available for HKD counter to clients, which is in line with the existing practice.