The Hong Kong Monetary Authority (HKMA) announced the creation of CMU OmniClear Limited, a subsidiary that will manage the Central Moneymarkets Unit (CMU).
This move aims to commercialise the CMU, allowing it to expand its services and pursue new business opportunities with its own governance structure and commercial culture.
While CMU OmniClear will operate the system, the HKMA will retain ownership and oversight of the CMU, including policy, legal relationships with CMU participants, and strategic decisions.
This announcement coincided with the signing of a Memorandum of Understanding (MOU) between CMU OmniClear and SIX, a Swiss financial infrastructure provider.
This partnership will focus on developing international securities settlement and safekeeping, facilitating cross-border investment between Hong Kong, Switzerland, and other international markets.
CMU OmniClear is expected to officially take over CMU operations in January 2025.
The CMU has played a crucial role in Hong Kong’s debt securities market since 1990, providing clearing, settlement, and custodian services.
Its importance has grown with initiatives like the 2017 launch of Bond Connect, linking onshore and offshore markets.
Stanley Chan, CEO of CMU OmniClear, said,
“Today marks an important milestone for the CMU OmniClear in developing into a regional central securities depository (CSD) in Asia.
With the CMU OmniClear’s unique gateway function between China and global markets, we believe our new partnership with SIX will help Chinese investors to tap into the opportunities in the Swiss and international markets, and allow Swiss investors enhanced access to the Hong Kong and Mainland markets.”
Jos Dijsselhof, CEO at SIX, said,
“We are very pleased with this agreement with such a relevant entity as CMU OmniClear, which we are convinced will be positive for both parties and both areas.
Asia is a part of the world where we explore business opportunities with great potential.”
Featured image: (From left) Stanley Chan, CEO of CMU OmniClear Limited, and Marcus Harréus, Global Head of Commercials, Securities Services at SIX, sign a MoU to promote collaboration in securities depository and settlement.