HKEX to Launch User Registration for IPO Settlement Platform FINI in Q4 2022

HKEX (Hong Kong Exchanges and Clearing) has announced it will commence FINI user registration and on-boarding in Q4 2022, with a view to launching the platform in June 2023.

FINI (Fast Interface for New Issuance) was first proposed in a concept paper released in November 2020 as a web-based platform that will modernise Hong Kong's IPO settlement process, and reduce the IPO settlement cycle from T+5 currently to T+2 and eventually T+1.

The platform will allow relevant market participants and authorities to interact "seamlessly and digitally" on the steps that comprise the end-to-end settlement process for new listings, helping to reduce market risk, increasing efficiency, modernise participants' interactions and make Hong Kong’s primary market infrastructure more competitive.

In July 2021, HKEX said the proposal received "overwhelming support" across the buy-side and sell-side, and that it would start the initial phase of FINI user onboarding in Q1 2022, with a view to rolling out the platform in Q4 2022.

Since the announcement, HKEX has been actively engaging relevant stakeholders to support the platform development process, taking into consideration the needs and preferences of a range of market participants and factoring into its planning other recent market enhancements, such as the introduction of the SPAC regime.

To facilitate a smooth migration, HKEX will host a series of technical workshops and demonstration sessions for market participants in the coming months, in preparation for formal user on-boarding to start in Q4. "The implementation plan for FINI will help ensure market readiness and a smooth transition for all IPO market participants," HKEX said.

HKEX has published an updated FINI Information Pack, which contains additional and updated FAQs and sets out onboarding requirements for each type of market participant – sponsors, legal counsel, intermediaries, HKSCC participants, FINI banks and share registrars.