English
CMU Fund Order Routing & Settlement Service
Launched in August 2009, the CMU Fund Order Routing and Settlement Service provides CMU members with a standardised platform for processing investment fund transactions between local and overseas investment houses, distributors, custodians, and Transfer Agents and the cash settlement of Investment Fund Shares through the RTGS systems in Hong Kong.
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
Click to view original imageBenefits
- Streamlined fund transaction processing can enhance operational efficiency and shorten fund trading and settlement cycle.
- Through this standardised and automated platform, operational risks are mitigated and back office costs can be reduced.
- Enables real time status monitoring of both the transactions and payment.
Mainland-Hong Kong Mutual Recognition of Funds (MRF)
Following the launch of Mainland-Hong Kong Mutual Recognition of Funds (MRF) in July 2015, which allows eligible Mainland and Hong Kong recognised funds to be distributed to retail investors in each other’s market, the CMU has linked up with transfer agents (TAs) and fund houses (FHs) in the Mainland, including the China Securities Depository and Clearing Corporation Ltd (ChinaClear), to facilitate cross-border investment fund order routing services. With the MRF service, fund orders will be processes in an automated and efficient manner.
MRF service includes:
- Routing of order instructions from CMU Members who are distributors of recognized Mainland investment funds eligible for MRF to TAs/FHs including ChinaClear in the Mainland for Southbound MRF;
- routing of order instructions from ChinaClear who consolidates the orders of recognised Hong Kong investment funds eligible for Northbound MRF to TAs/FHs in Hong Kong;
- Distribution of Mainland investment fund information such as Net Asset Value (NAV), corporate events, fund status etc;
- Provision of custody operation information; and
- Provision of regular reports
Eligibility
More details on the eligibility requirements of the MRF can be found in the websites of the China Securities Regulatory Commission (CSRC) and the Securities and Futures Commission (SFC).
Benefits
- A safe and efficient channel for retail investors in Mainland to access overseas funds and retail investors in Hong Kong to access Mainland funds.
- A greater choice of mutual funds for portfolio diversification.
- Streamlined procedure to obtain authorisation for retail distribution in the other jurisdiction.
Related Information
- Please refer to Section 2 under Part V of the CMU Reference Manual on Reference Materials page
- More on MRF
