Hong Kong Exchanges and Clearing (HKEX) has signed a Memorandum of Understanding (MoU) with CMU OmniClear, the operator of the Central Moneymarkets Unit (CMU) under the Hong Kong Monetary Authority (HKMA). The agreement outlines plans to improve post-trade efficiencies in the region’s securities market, with a particular focus on fixed income.
The collaboration aims to improve operational efficiencies between equities and fixed income, facilitate the use of Chinese bonds as collateral, and strengthen Hong Kong’s role as a bond issuance centre. It also includes a longer-term ambition to establish an international central securities depository (ICSD) in Asia.
Bond settlement and collateral management are key areas of focus. CMU plays a role in the settlement of Bond Connect transactions and supports Swap Connect by managing collateral. HKEX and the HKMA have been working together on these initiatives since Bond Connect launched in 2017.
“This agreement underscores HKEX’s strategic commitment to build a vibrant, world-leading FIC ecosystem in Hong Kong”, says Bonnie Chan, Chief Executive Officer at HKEX. “We look forward to working closely with the HKMA and CMU OmniClear to advance the development of Hong Kong’s fixed-income market, enabling the next chapter of Renminbi internationalisation and enhancing Hong Kong’s status as an international financial centre, a global risk management centre, and an offshore Renminbi business hub.”
