XN000022-1994-12-15 — Page 12

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Cedel establishes link with Hong Kong

The Hong Kong Monetary Authority (HKMA) and Cedel, the international clearing and settlement company, jointly announced today that a link had been established between Cedel and the Central Moneymarkets Unit (CMU), the centralised clearing system for debt instruments operated by the HKMA.

The link will become operational tomorrow (Friday). Cedel has appointed Bankers Trust Company, Hong Kong, Cedel's current Euro- depositary in Hong Kong, as its agent to process transactions in connection with those instruments cleared by the CMU.

The Chief Executive of the HKMA, Mr Joseph Yam, said: "I am pleased that the linkage between the CMU and Cedel can be in operation well ahead of schedule. To develop linkages with large international clearing systems is part of HKMA's on-going efforts to develop the market infrastructure to promote the growth of the Hong Kong debt market."

Philippe Metoudi, Cedel's Head of the South East Asia region said: "The service will be Cedel's first link with a domestic clearing system in South East Asia, and is the beginning of further expansion of Cedel services to the key domestic markets of South East Asia.

"Cedel is committed to providing its global customer base with access to the key domestic markets of the world. The link with the CMU establishes a bridge to one of the most dynamic markets in the world and one which is set to enjoy continued growth over the next few years.

"We are also delighted to further our good working relationship with the Hong Kong Monetary Authority."

CMU, the centralised book-entry safekeeping, clearing and settlement system for Hong Kong dollar debt securities, has experienced rapid development in recent months.

Currently there are 134 Recognised Dealers for trading of Exchange Fund paper and 172 CMU Members for the trading of private sector debt securities.