Terrirudicki
March 4th, 2025 10:12
CMU Omniclear and Hkex have signed the MOU to strengthen post-trade securities infrastructure in Hong Kong, focusing on cross-asset efficiency and internationalization of the yuan.
In a move to strengthen Hong Kong’s position as an international financial hub, Exchange Fund subsidiary CMU Omniclear Limited and Hong Kong Exchanges and Clearing Limited (HKEX) have signed a memorandum of understanding (MOU). The strategic agreement aims to strengthen post-trade securities infrastructure in Hong Kong’s capital markets and support the long-term development of the fixed income and currency ecosystem.
Important areas of cooperation
The MOU outlines several areas for collaboration, including achieving cross-asset class efficiency between stocks and bonds, expanding the use of mainland bonds as collateral, and strengthening Hong Kong’s role as a bond issuing centre. Furthermore, the partnership aims to develop an International Central Securities Depository Institution (ICSD) in Asia, thereby integrating Hong Kong’s Global Risk Management Centre and Offshore Renminbi (RMB) position as a business hub.
Statement from the key figure
Eddie Yue, CEO of the Hong Kong Monetary Authority (HKMA) and chairman of the board of directors of CMU Omniclear, expressed his enthusiasm for the collaboration. He said, “This implies a significant milestone and a shared commitment to supporting the development of Hong Kong’s capital markets. We believe that our collective efforts will enable us to provide a wide range of products to the market across our asset class, and to promote continuous development and innovation.”
Hkex CEO Bonnie Chan reiterated this sentiment, saying, “The contract highlights Hkex’s strategic commitment to creating a vibrant, world-leading FIC ecosystem in Hong Kong. We look forward to working closely with HKMA and CMU Omniclear to advance the development of Hong Kong’s Ribincome Market.
Impact on Hong Kong’s financial sector
The partnership between CMU Omniclear and Hkex is expected to have a major impact on Hong Kong’s financial sector. By focusing on cross-asset efficiency and internationalization of the yuan, the initiative aims to attract global investors and increase Hong Kong’s competitiveness as a financial centre. Development of ICSDs in Asia is particularly noteworthy as it streamlines operations and reduces costs for market participants.
According to Hong Kong’s monetary authorities, the MOU is a crucial step in converting Central Money Market Units (CMUs) into regional securities depository, further solidifying Hong Kong’s financial ecosystem.
The collaboration between CMU Omniclear and Hkex is a forward-looking initiative consistent with broader efforts to maintain its status as Hong Kong’s leading international financial centre. As the financial environment continues to evolve, such partnerships are essential to adapt to new challenges and opportunities.
Image source: ShutterStock
