USD Clearing - Intraday Sales and Repurchase Arrangement (USD Intraday Repo Facility)

HSBC, in its capacity as the USD Clearing Settlement Institution (USD SI), provides an Intraday Repo Facility to the Direct Participants of the USD Clearing System.

The securities eligible for the Intraday Repo Facility consist of Hong Kong's Exchange Fund Bills and Notes as presently used for repos with the Hong Kong Monetary Authority (HKMA) with respect to HKD Clearing, a number of supranational papers, US Treasuries and the securities of HSBC and Hang Seng Bank. For details, please refer to the List of Eligible Securities.

Similar to the existing procedures for the Intraday Overdraft Facility, the outstanding intraday repo position needs to be covered by the close of the Clearing House Interbank Payments System (CHIPS) in New York. Direct Participants need to advise HSBC by SWIFT messages (MT202s) regarding the funds being transferred to settle the outstanding repo position by Hong Kong USD Real-Time Gross Settlement System (RTGS) end-of-day funding cut-off at 7:15 pm Hong Kong Time. In the unexpected scenarios where an intraday repo failing to be settled by CHIPS close or goes overnight, HSBC will charge an additional amount or classify it as permanent subject to the conditions laid out in the Master Sales and Repurchase Agreement and the Account Opening Form for US Dollar Settlement Account.

The minimum amount for an intraday repo deal is set at USD1 million and the repo repurchase will be done on a last-in-first-out (LIFO) basis. For operational simplicity, repurchase funds sent via CHIPS in New York time will be returned to the Direct Participants' USD settlement accounts at 8.30 am Hong Kong time. This repurchase will be carried out at the beginning of the day's RTGS operations by utilising the credit balances of the USD settlement accounts.

For further information, please contact your relationship manager or the USD Clearing Settlement Institution.

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