JPMorgan Launches Repo Platform for Hong Kong

JPMorgan Worldwide Securities Services will launch a South Asian repo financing collateral management platform, with a view to enhancing financial stability and providing secured channels for liquidity provisions to the financial markets in Hong Kong.

Developed in partnership with the Hong Kong Monetary Authority (HKMA), the new repo financing program will facilitate repo transactions between members of Hong Kong's Central Moneymarkets Unit (CMU) and international financial institutions.

The program enhances services currently provided to CMU members, who will be able to accept a spectrum of international securities lodged with JPMorgan and other international securities depositaries as collateral. Additionally, international financial institutions, by entering into repo financing transactions with CMU members, will obtain access to liquidity for offshore yuan, euros, Hong Kong dollars, and US dollars in Hong Kong.

To support this new program, JPMorgan has developed and will launch a collateral management solution to manage the end-to-end flow of repo activity between CMU members and international financial institutions operating regionally or globally.

"With the launch of this repo financing program, we have taken a step forward in the development of Asia's capital markets," says Esmond Lee, executive director of financial infrastructure at HKMA. "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."

The program enhances services currently provided to CMU members, who will be able to accept a spectrum of international securities lodged with JPMorgan and other international securities depositaries as collateral.