26 industry speakers and 330 participants gathered at the SWIFT Business Forum in Hong Kong optimistic on the prospects for Hong Kong’s financial industry

SWIFT, the global provider of secure messaging services, held its second annual SWIFT Business Forum in Hong Kong on May 7 and 8. The forum was well-attended by more than 330 participants from the financial services industry.

Addressing the forum theme of regional market harmonisation, speakers noted that while market forces are driving common standards and strengthened market links regulatory dimensions are adding to the momentum. Closer harmonisation in payment, clearing and settlement will support the volume of transactions needed to strengthen Hong Kong’s competitive position as an international financial hub.

The plenary panelists were unanimously positive in their assessment of how Hong Kong would fare in the face of the recent financial instability in world markets. Among the factors cited were continued economic growth in the region, along with a parallel expansion in intraregional trade in goods and services, and continued diversification of investment options such as REITs, CDs hedge funds and unit trusts.

In his plenary address, Mr Esmond Lee, Executive Director, Financial Infrastructure, Hong Kong Monetary Authority said, “Settlement of payments in US dollars, Euros and Hong Kong dollars can now be conducted in Asian time. As a result, new financial products and services will attract regional investors to Hong Kong while enhancing our role as a platform to service the increasing number of Mainland Chinese players.”

Mr Philippe Dirckx, General Manager and Regional Head from Euroclear Bank Hong Kong Branch stated, “Harmonisation and consolidation can satisfy a greater appetite for cross border trading through efficient management of larger transactions volumes. The benefits would be a reduction of costs, and risks through the elimination of the middlemen.” Mr Dirckx described the goal of Euroclear’s consolidation efforts in terms similar to the benefits of Hong Kong’s RTGS CHATS payment system for member financial institutions, “to transform cross-border settlements into internal book-entry settlements.”

Ms Linda McLaughlin-Moore, Managing Director, Regional Product & Delivery Head, JPMorgan, focused on the importance of collaboration. “The faster that we can collaborate – engaging with both regulators and customers – and complete transactions, the quicker we in Hong Kong can take advantage of Asia’s historic market opportunities through SWIFT and other networks, both here and in New York’s and London’s capital and financial markets.”

Mr David Gilmour, Global Product Head, Securities Services Operations, Standard Chartered Bank, highlighted the importance of the global regulatory environment on continued market harmonisation. “Strong economic growth and funds sector expansion combined with compliance with US and European regulations is driving a positive change in the investment landscape and its supporting infrastructure. Concurrently enhancing this infrastructure are reforms highlighted by Hong Kong’s cross-border trading and settlement, a shortening of the settlement cycle and a rapid take-up of straight-through processing.”

Commenting on the opening plenary, Mr Ian Johnston, of SWIFT said, “SWIFT will continue working with the private and public sectors to strengthen the financial infrastructure and to speed up payment, clearing and settlement. Reduced settlement times will bolster support the high-volume transaction flow needed to maintain Hong Kong’s role as a leading financial centre.”

The second in this year’s series of 10 business forums for the Asia Pacific region organised by SWIFT to foster dialogue within the financial services industry, the Hong Kong event was well supported by 26 industry speakers from banks, financial institutions and corporates. Inclusion of corporates is an on-going strategic move by SWIFT to extend its network, products and solutions to that segment via their banking partners. The next event in the series will be held in Melbourne on 27 May 2008.

The Hong Kong Business Forum closed on a positive note with participants and speakers looking forward to Sibos, the world’s leading financial industry forum, organised annually by SWIFT to be held from September 15-19, this year in Vienna. Details are available on www.swift.com.

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About SWIFT
SWIFT is a community-inspired co-operative, founded by and for the financial services industry. We work globally in 208 countries with more than 8,300 organisations, including banks, market infrastructures, securities institutions, corporations, network providers, business partners and technology companies. Our aim is to ensure the financial world can carry out its business operations with certainty. Our role is two-fold. We provide the platform, products and services that allow our customers to connect and exchange financial information securely and reliably. We also act as the catalyst that brings the financial community together to work collaboratively to shape market practice, define standards and consider solutions to issues of mutual concern and interest.

For more information, please refer to www.swift.com.

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