CMU OmniClear Limited, a wholly-owned subsidiary of the Hong Kong Monetary Authority (HKMA) and SIX signed a Memorandum of Understanding (MOU) for cooperation in securities depository and settlement to foster the growth of cross-border investment.
Based on the MOU, the two parties will now aim to collaborate in a joint international securities settlement and safekeeping, develop a working relationship, and maintain channels for the exchange of information.
The overall scope of the cooperation reportedly features areas like mutual support for investment in the Hong Kong, Swiss and international markets. It includes the mutual exchange of information on operation and market and mutual development of business opportunities.
As covered, SIX explains that it provides and operates stable as well as efficient infrastructure for the Swiss and Spanish financial centers, thus ensuring access to the capital markets and the flow of information and money between financial market players.
As a global provider of financial information, SIX delivers reference, pricing, corporate actions, and ESG data and provides regulatory services and indices to clients around the world.
The company is owned by its users (over 120 banks) with a workforce of 4,160 workers as well as a presence in 19 different countries.
As noted in the update, CMU OmniClear Limited is said to be a “wholly owned” subsidiary of the Exchange Fund established to operate the Central Moneymarkets Unit system on behalf of the Hong Kong Monetary Authority.
Since 1990, CMU has offered clearing, settlement and custodian services for Hong Kong’s multi-currency debt securities and those in global markets.
Over the years, the CMU has established linkages with regional and international central securities depositories in order to further expand its issuer and investor reach.
With the introduction of Bond Connect scheme in 2017, the CMU has become a “pivotal” financial market infrastructure serving onshore as well as offshore market participants.
