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CMU OmniClear and HKEX Forge Partnership to Boost Hong Kong’s Financial Market Infrastructure
In a groundbreaking move to strengthen its position as an international financial hub, the Central Moneymarkets Unit (CMU) subsidiary, CMU OmniClear Limited, has partnered with Hong Kong Exchanges and Clearing Limited (HKEX) to enhance the post-trade securities infrastructure of Hong Kong’s capital markets. The Memorandum of Understanding (MOU) signed between the two entities aims to support the long-term development of Hong Kong’s fixed-income and currencies ecosystem.
The MOU outlines several key areas for collaboration, including achieving cross-asset class efficiencies between equities and fixed income, expanding the use of Mainland bonds as collateral, and enhancing Hong Kong’s role as a bond issuance center. Furthermore, the partnership seeks to develop an international central securities depository (ICSD) in Asia, consolidating Hong Kong’s status as a global risk management center and an offshore Renminbi (RMB) business hub.
Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA) and Chairperson of the Board of Directors of CMU OmniClear, expressed enthusiasm about the collaboration. He noted that this MOU signifies an important milestone in their shared commitment to supporting the development of Hong Kong’s capital markets. With their collective efforts, they believe it will be possible to offer the market a wider spectrum of products across asset classes, fostering continued development and innovation.
Bonnie Chan, Chief Executive Officer at HKEX, echoed this sentiment, stating that this agreement underscores HKEX’s strategic commitment to building a vibrant, world-leading financial infrastructure in Hong Kong. The company looks forward to working closely with both the HKMA and CMU OmniClear to advance the development of Hong Kong’s fixed-income market.
The implications of this partnership are significant for Hong Kong’s financial sector. By focusing on cross-asset efficiencies and internationalizing the RMB, the initiative aims to attract global investors and enhance Hong Kong’s competitiveness as a financial center. The establishment of an ICSD in Asia is particularly noteworthy, as it could streamline operations and reduce costs for market participants.
According to the HKMA, this MOU marks a pivotal step in transforming the CMU into a regional securities depository, further solidifying Hong Kong’s financial ecosystem.
Source: https://Blockchain.News/news/cmu-omniclear-hkex-partnership-hong-kong-financial-infrastructure
