HKEX is Pleased to Announce on July 6 That it Will Proceed to Introduce A New Platform, FINI
HKEX is pleased to announce on July 6 that it will proceed to introduce a new platform, FINI (Fast Interface for New Issuance), to comprehensively streamline and digitalise Hong Kong’s IPO settlement process.
The FINI would benefit Hong Kong’s IPO market by reducing market risk, increasing efficiency, modernising participants’ interactions and laying a competitive digital foundation for Hong Kong’s primary market infrastructure.
Hong Kong currently has a T+5 settlement cycle, and the Concept Paper set out proposals to reduce this to T+1. Having consulted the market and taking into account respondents’ feedback and operational needs, HKEX will proceed with the development of FINI for handling all Hong Kong IPOs, initially adopting a T+2 settlement cycle.
FINI will also address the issue of excessive liquidity lock-up in heavily oversubscribed IPOs, by allowing clearing participants to opt in for a compressed prefunding requirement in certain circumstances, which could release significant sums of liquid funds that would otherwise be locked up during the IPO subscription period.
HKEX plans to ensure that there is ample time for market readiness ahead of the introduction of FINI and therefore expects FINI to be rolled out in the fourth quarter of 2022, at the earliest.
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