The Hong Kong banking community is to replace its proprietary real-time gross settlement system (RTGS) for transmitting high value payments with a new SwiftNet-based messaging platform.
The move by Hong Kong Interbank Clearing Limited (HKICL) and the Hong Kong Monetary Authority (HKMA) mirrors similar developments in neighbouring South East Asian markets, including Thailand, the Philippines and Singapore.
Implementation has started and industry-wide testing for HKICL and HKMA is scheduled for the end of 2007 and is expected to go live in Q1 2008.
The move to SwiftNet will make use of the FIN and FINCopy services for transactions input and SwiftNet messaging services for real-time query/response and interactive functions.
IBM as prime contractor, together with LogicaCMG as the application provider have been selected as the vendor consortium to develop the new middle-tier system that will link with the SwiftNet services.
Eddie Yue, executive director of monetary management and infrastructure department at HKMA, says the move to a new system will enable the territory to remain competitive in the global marketplace. "Hong Kong will be able to attract and expand new business domestically as well as overseas as access to the RTGS systems is more open and standardised."