On 19 Sep 2024, the HKMA confirmed banking sector readiness for Severe Weather Trading (SWT) implementation on 23 September 2024, noting AIs have completed system updates for cheque clearing, remote operations, and expanded services to brokers and retail customers. The HKMA reiterated requirements for contingency planning, customer communication, and post-implementation reviews to address initial operational challenges.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Operational Readiness Confirmation
On 19 Sep 2024, the HKMA confirmed that authorized institutions (AIs) have completed technical and operational preparations for the implementation of Severe Weather Trading (SWT) arrangements, with all AIs confirming readiness ahead of the SWT launch on 23 September 2024.
Key Preparedness Areas
AIs have implemented system changes for cheque clearing and settlement of paper cheques (collected prior to severe weather days) and e-cheques, aligning with revised Clearing House Rules issued by Hong Kong Interbank Clearing Limited on 13 August 2024. AIs have finalised remote working arrangements, centralised coordination units, and operational manuals prioritising personnel safety. For securities brokers, AIs confirmed continuity of payment services (e.g., CHATS, Faster Payment System) and expanded offerings including loan drawdowns and time deposits, alongside e-channel migration support. Retail banking services will maintain electronic channels, customer hotlines, and enhanced online functions (e.g., adjusted transfer limits, third-party payee registration), with some AIs introducing additional services like foreign currency exchange.
Post-Implementation Guidance
The HKMA reminded AIs to maintain comprehensive contingency plans and effective customer communication regarding service disruptions and transaction status during SWT implementation. AIs are urged to collaborate with securities brokers on settlement account operability and exception protocols. Post-implementation, AIs are encouraged to review customer and personnel feedback to assess SWT effectiveness, particularly following the first severe weather day after 23 September 2024.
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