Hong Kong Interbank Clearing Limited (HKICL) has contracted SWIFT to help ensure the resiliency of the city's financial infrastructure.
Under the terms of the deal, HKICL will use SWIFT's Market Infrastructure Resiliency Service the service (MIRS) to support its Real-Time Gross Settlement (RTGS) system.
MIRS will act as a third-line backup system for RTGS operators experiencing problems with first and second-line systems. The new MIRS business continuity service is expected to go live at the end of 2016.
Esmond Lee, director of the Hong Kong Monetary Authority -- the joint owner of HKICL -- said the system will serve as a critical source of extra redundancy.
"The RTGS system has been working smoothly in the past but there is no room for complacency. We must stay vigilant in ensuring that our current financial infrastructure will continue to support the banking and financial sectors in Hong Kong even in extreme scenarios," he said.
SWIFT said it has worked with central banks to ensure that the MIRS meets their requirements in terms of affordability, capacity, availability and other factors. Another key attribute of the MIRS service is the ability to reconstruct balances at point of failure.