HKEX to invest $455m for 20 percent stake in central securities depository owned by HKMA

Hong Kong’s bourse operator is looking to acquire a 20 percent stake in the city’s central securities depository infrastructure owned by the de facto central bank for up to HK$455 million. 

Hong Kong Exchanges and Clearing (0388) will become a strategic shareholder of CMU OmniClear, which carries out the operations of the Central Moneymarkets Unit through units on behalf of the Hong Kong Monetary Authority, according to a filing and a statement. 

Upon completion, the Exchange Fund managed by the HKMA and HKEX will hold 80 percent and 20 percent of the fixed-income central securities depository, respectively. 

A signing ceremony will take place later today in connection with the establishment of the joint venture.

CMU had around HK$5 trillion equivalent of assets under custody as of September 30 and plays a key role in managing the clearing and settlement of bond transactions conducted on Bond Connect, as well as supporting the growth of Swap Connect by facilitating efficient use of collateral held with CMU.