Hong Kong Exchange to pilot CBDC settlement for derivatives market

Hong Kong Exchanges and Clearing (HKEX) and the Hong Kong Monetary Authority (HKMA) have announced a joint pilot program to improve settlement efficiency in the derivatives market during after-hours trading. The plan will test a method for paying upfront margin deposits during overnight trading hours using the digital Hong Kong dollar (e-HKD), a 24-hour wholesale central bank digital currency (CBDC). This is expected to strengthen risk management in the derivatives market by enabling margin payments outside of traditional banking hours.