Debt Securities Settlement System

Central Moneymarkets Unit

The Central Moneymarkets Unit (CMU) was established in 1990 to provide computerised clearing and settlement facilities for Exchange Fund Bills and Notes. In December 1993, the HKMA extended the service to other Hong Kong dollar debt securities. The CMU offers an efficient, safe and convenient clearing and custodian system for Hong Kong dollar debt instruments. Since December 1994, the CMU has been linked with other regional and international systems. This helps promote Hong Kong dollar debt securities to investors outside Hong Kong who can use the links to participate in the Hong Kong dollar debt market.

The CMU service was further extended to non-Hong Kong dollar debt securities in January 1996. In December 1996, a seamless interface between the CMU and the Hong Kong dollar RTGS interbank payment system was established. This enables the CMU system to provide real-time and end-of-day Delivery versus Payment (DvP) services to its members. The CMU was further linked to the US dollar, euro and Renminbi RTGS systems in December 2000, April 2003 and March 2006 respectively to provide real time DvP capability for debt securities, and also intraday and overnight repo facilities for the US dollar, euro and Renminbi payment systems in Hong Kong.

With effect from January 2025, CMU OmniClear Limited (CMU OmniClear), a wholly owned subsidiary of the Exchange Fund, is responsible for assisting the HKMA in the operation and business development of the CMU. The HKMA is still the owner and system operator of the CMU system. The legal relationships with CMU participants and other system linkages remain with the HKMA, and decisions on policy and strategic development regarding CMU’s activities and services are made by the HKMA.

CMU OmniClear Website

The CMU OmniClear Website provides the industry and public with a quick and convenient means of searching for useful bond market information as well as CMU services updates. The website also supports Securities Search and Member Search to facilitate efficient daily operation of CMU participants.

Main Scope of Services

In addition to providing CMU members with securities transfer services, the CMU offers the following services:

Collateral Management System
- Automatic Repo Facility (both intraday and overnight) in Hong Kong dollar, US dollar, euro and renminbi
- Collateralised Lending Service in support of primary bond issuance
- Bank-to-bank repo service
Securities Lending Service
- Securities Lending Programme for debt securities issued by the private sector
Market Making Arrangement for Exchange Fund Bills and Notes
Issuance Programme for Exchange Fund Bills and Notes
Arranger, custodian, agent and operator of notes issued by HKSAR Government
Real time DvP for all CMU securities denominated in Hong Kong dollar, US dollar, euro and renminbi
Cross-border DvP Settlement via regional central securities depositories (CSDs) and international central securities depositories (ICSDs)
Other custodial services
- Paying agent
- Securities lodgement
- Allotment by tendering
Corporate action service
Fund order routing and settlement service

Settlement Finality

The settlement of transactions made through the CMU system is final and irrevocable. This finality is protected from insolvency laws and other laws by the Payment Systems and Stored Value Facilities Ordinance.

Collateralised Lending Service in Support of Primary Bond Issuance

The collateralised lending service was introduced on 1 April 2022 to support liquidity need on primary bond issuance for CMU participants. This service is free of charge for intraday lending and covers HK dollar, US dollar, euro and renminbi. The borrowing limit is up to the size of primary bond issuance in the form of repo arrangement.

CMU Tendering Platform

Besides providing clearing and settlement services for secondary market debt securities transactions, the CMU also provides a tendering platform for issuers to issue debt securities in Hong Kong through tendering. The Ministry of Finance of the People’s Republic of China (CMOF) issued RMB sovereign bonds in Hong Kong using CMU’s tendering platform for the first time in November 2010. Since then, CMOF has been using this CMU service every year for its RMB sovereign bond issuances in Hong Kong. Starting from November 2018, the People’s Bank of China (PBoC) has also been using CMU’s tendering platform for the issuance of PBoC bills in Hong Kong.

Using Exchange Fund Bills/Notes as Margin Collateral for Trading of Stock Options and Futures

In order to assist liquidity management by market participants in the stock options and futures exchange, the CMU has developed infrastructure to enable the SEHK Options Clearing House Limited and the Hong Kong Futures Exchange Clearing Corporation Limited to use Exchange Fund paper as common margin collateral for the trading of stock options and futures. With the approval of the HKMA, the SEHK Options Clearing House Limited and the Hong Kong Futures Exchange Clearing Corporation Limited became Recognised Dealers of Exchange Fund paper in March 1999.

CMU Fund Order Routing and Settlement Service

Launched in August 2009, the CMU Fund Order Routing and Settlement Service provides CMU Members, who may also be investment fund distributors, custodians, managers and institutional investors in Hong Kong and the region, with a standardised platform for processing investment fund transactions. The scope of operation of the service includes:

handling of investment funds subscription, redemption and switching orders
generation of corresponding confirmation and payment instructions
provision of regular reports
provision of investment funds custodian service
operation gate way for the cross border Mutual Recognition of Funds scheme

Disclosure Framework for CMU System

The Committee on Payments and Market Infrastructures (CPMI) (formerly known as Committee on Payments and Settlement Systems (CPSS)) of the Bank for International Settlements and the International Organization of Securities Commissions (IOSCO) jointly issued a disclosure framework and assessment methodology in April 2012 for their principles for financial market infrastructures (PFMIs), which is the latest international standards for financial market infrastructures (FMIs).

The disclosure framework (DF) is intended to promote consistent and comprehensive public disclosure by FMIs in line with the requirements of the PFMIs. The CMU is subject to the DF, and the disclosure report of the CMU is completed according to the disclosure template outlined in the DF.

Related Information

Reference Materials

Operational Information

The above information are as of last business day.

*These information are updated 6 times every business day on the CMU OmniClear Website. Please click here to visit the CMU OmniClear Website and obtain the latest information.

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