Hong Kong will launch the Uncertificated Securities Market (USM), shifting prescribed listed securities away from paper-based processes and allowing investors to hold securities electronically in their own names, according to a Tuesday article published by Hong Kong Exchanges and Clearing (HKG:0388).
Chief Operating Officer Vanessa Lau said the exchange will also roll out a modernized fee structure to support the transition, with charges designed to be simpler, fairer, and more predictable.
Lau said USM will be implemented through a phased transition, with prescribed securities becoming participating securities in batches. Issuers will announce their individual transition plans in due course.
During the transition period, certificated and uncertificated holdings will operate in parallel until the system transition is completed, she said.
To support the rollout, HKEX will introduce new securities depository processes and work with intermediaries and issuers on system enhancements and practice sessions, according to the article.
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