HKEX and HKMA are piloting e-HKD to eliminate the 15-hour margin requirement when Derivative volume exceeds 1.78 million contracts per day.
Hong Kong Exchanges and Clearing Limited (HKEX) and the Hong Kong Monetary Authority (HKMA) have announced a joint pilot project to study the feasibility of applying e-HKD, the central bank's wholesale digital currency, to the pre-clearance margin settlement process for after-hours (AHT) trading in the Derivative market. The initiative, announced on Thursday, aims to address a long-standing operational bottleneck in the current margin management mechanism.
Under current regulations, clearing members (CPs) must submit margin requests to HKFE Clearing Corporation Limited (HKCC) before 3 PM to ensure the funds are recorded in time for the upcoming AHT session. This limitation stems from the traditional banking system's operating hours, while the after-hours trading of the Derivative market requires greater flexibility regarding the timing of margin replenishment.
Thanks to its 24/7 operation, e-HKD is expected to completely eliminate the aforementioned 15-hour time limit, thereby giving clearing members more leeway to proactively manage their margin funds at any time, no longer being constrained by the normal operating hours of the banking system.
Test in real-world conditions before scaling up.
To verify the feasibility of the solution, HKEX is inviting HKCC clearing members to participate in real-value test transactions on a completely voluntary basis. According to the two agencies, any plans for wider deployment in the future will depend on regulatory approval as well as the actual readiness of the market, indicating a cautious, phased approach to bringing wholesale CBDCs into formal operation within the financial infrastructure.
The announcement of the pilot project comes amid continued significant growth in the Hong Kong Derivative market. Average daily volume (ADV) has surged from a record 1.66 million contracts in 2025 to over 1.78 million contracts in just the first five months of 2026, demonstrating growing demand for more efficient margin settlement solutions.
Vanessa Lau, Chief Operating Officer of HKEX, stated that this project reflects the shared commitment between HKEX and HKMA to embracing innovation, while contributing to strengthening market resilience and enhancing Hong Kong's position as a leading international financial center.
Sharing this view, Howard Lee, Deputy Chief Executive of the HKMA, assessed that the pilot program demonstrates a practical application of wholesale CBDCs in a real market environment, thereby affirming the agency's priority focus on improving operational efficiency for Hong Kong's financial infrastructure.
