English
CMU OmniClear and LCH sign MOU
CMU OmniClear Limited (CMU OmniClear), a market infrastructure operator wholly-owned by the Exchange Fund of Hong Kong, and LCH Limited (LCH), an LSEG company, today (9 June) signed a Memorandum of Understanding (MOU) in Hong Kong to jointly support the development of clearing and settlement solutions for derivatives denominated in offshore Renminbi (CNH) and other applicable currencies, using Hong Kong’s payment infrastructure.
Under the terms of the MOU, both parties have also committed to collaborating on facilitating the acceptance of CNH-denominated Chinese government bonds (CGBs) held in custody through Hong Kong’s central securities depository infrastructure as eligible collateral for LCH clearing members. This collaboration will enable international investors to manage their CNH bond holdings more efficiently, increasing liquidity and capital efficiency, and supporting improved risk management.
The MOU marks a significant step forward for CMU OmniClear in promoting the wider acceptance of Chinese bonds as eligible collateral in international markets. This builds on earlier steps taken by CMU OmniClear and the Hong Kong Monetary Authority (HKMA). In February 2024, the HKMA began to include onshore CGBs and Mainland Chinese policy bank bonds as eligible collateral for its RMB Liquidity Facility. Starting in January 2025, these bonds held by global investors were approved as eligible margin collateral for Swap Connect transactions cleared at OTC Clearing Hong Kong Limited (OTC Clear). In March 2025, this was further expanded to include all other derivative transactions at OTC Clear. In February 2025, CMU OmniClear launched bond repurchase (repo) transactions on Mainland Chinese bonds held by offshore investors under Bond Connect using its Triparty Repo Service in Hong Kong.
Mr Stanley Chan, Chief Executive Officer of CMU OmniClear, said, “The collaboration between CMU OmniClear and LCH demonstrates the strong demand from global investors for CNH-denominated debt securities and related risk management tools. It also highlights the unparalleled role of Hong Kong’s payment and settlement infrastructure in supporting investment in CNH-denominated debt securities by investors from all over the world. We are pleased that CGBs held in Hong Kong’s central securities depository infrastructure will, for the first time, be accepted as eligible collateral outside of Hong Kong. CMU OmniClear will continue to collaborate with market infrastructures, regulators and market participants to extend our service coverage, further consolidating Hong Kong’s role as the international financial centre for Renminbi-related business.”
Mrs Susi de Verdelon, CEO of LCH, said, “We are delighted to partner with CMU OmniClear, and our clearing member banks and customers, as we embark on our ambitious plans to expand our services to market participants who want to trade and settle deliverable CNH derivatives globally. The APAC region continues to be a strategic focus for LCH, and we look forward to continued partnership as a greater number of financial institutions benefit from the margin, capital, and operational efficiencies that our services deliver.”
The service offerings are expected to be available in the first half of 2026, subject to regulatory approvals.
CMU OmniClear Limited
9 June 2025
Mr Stanley Chan (left), Chief Executive Officer of CMU OmniClear Limited, and Mrs Susi de Verdelon (right), CEO of LCH Limited sign a Memorandum of Understanding.
About CMU OmniClear
CMU OmniClear is a market infrastructure operator established in October 2024 and wholly-owned by the Exchange Fund of Hong Kong. CMU OmniClear is responsible for the operations and business development of Hong Kong’s central securities depository infrastructure, the Central Moneymarkets Unit (CMU) system, on behalf of the HKMA.
CMU OmniClear is committed to serving issuers and investors in the Hong Kong market, as well as facilitating cross-border investment between the Mainland Chinese and international capital markets through world class securities safekeeping, settlement, asset servicing and collateral management capabilities.
Under the terms of the MOU, both parties have also committed to collaborating on facilitating the acceptance of CNH-denominated Chinese government bonds (CGBs) held in custody through Hong Kong’s central securities depository infrastructure as eligible collateral for LCH clearing members. This collaboration will enable international investors to manage their CNH bond holdings more efficiently, increasing liquidity and capital efficiency, and supporting improved risk management.
The MOU marks a significant step forward for CMU OmniClear in promoting the wider acceptance of Chinese bonds as eligible collateral in international markets. This builds on earlier steps taken by CMU OmniClear and the Hong Kong Monetary Authority (HKMA). In February 2024, the HKMA began to include onshore CGBs and Mainland Chinese policy bank bonds as eligible collateral for its RMB Liquidity Facility. Starting in January 2025, these bonds held by global investors were approved as eligible margin collateral for Swap Connect transactions cleared at OTC Clearing Hong Kong Limited (OTC Clear). In March 2025, this was further expanded to include all other derivative transactions at OTC Clear. In February 2025, CMU OmniClear launched bond repurchase (repo) transactions on Mainland Chinese bonds held by offshore investors under Bond Connect using its Triparty Repo Service in Hong Kong.
Mr Stanley Chan, Chief Executive Officer of CMU OmniClear, said, “The collaboration between CMU OmniClear and LCH demonstrates the strong demand from global investors for CNH-denominated debt securities and related risk management tools. It also highlights the unparalleled role of Hong Kong’s payment and settlement infrastructure in supporting investment in CNH-denominated debt securities by investors from all over the world. We are pleased that CGBs held in Hong Kong’s central securities depository infrastructure will, for the first time, be accepted as eligible collateral outside of Hong Kong. CMU OmniClear will continue to collaborate with market infrastructures, regulators and market participants to extend our service coverage, further consolidating Hong Kong’s role as the international financial centre for Renminbi-related business.”
Mrs Susi de Verdelon, CEO of LCH, said, “We are delighted to partner with CMU OmniClear, and our clearing member banks and customers, as we embark on our ambitious plans to expand our services to market participants who want to trade and settle deliverable CNH derivatives globally. The APAC region continues to be a strategic focus for LCH, and we look forward to continued partnership as a greater number of financial institutions benefit from the margin, capital, and operational efficiencies that our services deliver.”
The service offerings are expected to be available in the first half of 2026, subject to regulatory approvals.
CMU OmniClear Limited
9 June 2025
Mr Stanley Chan (left), Chief Executive Officer of CMU OmniClear Limited, and Mrs Susi de Verdelon (right), CEO of LCH Limited sign a Memorandum of Understanding.
About CMU OmniClear
CMU OmniClear is a market infrastructure operator established in October 2024 and wholly-owned by the Exchange Fund of Hong Kong. CMU OmniClear is responsible for the operations and business development of Hong Kong’s central securities depository infrastructure, the Central Moneymarkets Unit (CMU) system, on behalf of the HKMA.
CMU OmniClear is committed to serving issuers and investors in the Hong Kong market, as well as facilitating cross-border investment between the Mainland Chinese and international capital markets through world class securities safekeeping, settlement, asset servicing and collateral management capabilities.
