Launch of CMU Fund Order Routing and Settlement Service

For more information, please contact:
Melissa Ng /David Hsieh at 212-752-3320
Daniel McAtee at 202-238-6360
Wing Yan Tong at 415-835-9315

August 11, 2009 -The Hong Kong Monetary Authority (HKMA) announced today (August 11) the launch of the CMU Fund Order Routing and Settlement Service, which has commenced operation today.

The CMU Fund Order Routing and Settlement Service is a new service provided by the Central Moneymarkets Unit (CMU) of the HKMA. It is designed to make fund order routing and settlement safer and more efficient by streamlining the processing of investment fund transactions among market participants. The new service provides a standardized platform for processing subscription and redemption orders and settlement and custody of investment funds among CMU members: these include investment houses, distributors, or custodians initiating the orders, and transfer agents receiving them.

Mr. Eddie Yue, Deputy Chief Executive of the HKMA said, “Investment funds have become an increasingly important international financial intermediation channel in addition to banking, equity and debt securities. However, there is no standardized processing platform for investment funds in Hong Kong at present. The launch of the CMU Fund Order Routing and Settlement Service will address the fund industry's need for an automated and standardized platform to make the process more efficient and reduce operational risks and back-office costs.”

Leveraging on the existing infrastructure, the new Service will further expand the service coverage of the CMU and contribute to the safety and efficiency of Hong Kong’s multi-dimensional financial infrastructure, thereby reinforcing Hong Kong’s role as the regional settlement hub and an international financial center.