Regulatory Alerts2023-04-28
Added · Updated
Frequently Asked Questions on Currency Conversion under Swap Connect
The Hong Kong Monetary Authority issued these guidelines to clarify operational requirements for Hong Kong FX Settlement Banks providing CNY conversion services under Swap Connect. The document mandates that investors appoint a single settlement bank, enforces a 15% threshold on net currency conversion differences over ten trading days, and requires monthly reporting of all client-facing transactions. It further details procedures for bank appointments, fund ring-fencing, and the submission of supporting documentation to verify genuine investment needs.
Topics
fx
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