The Monetary Authority launched a new service today making fund order routing and settlement safer and more efficient by streamlining the processing of investment fund transactions among market participants.

The new Central Moneymarkets Unit Fund Order Routing & Settlement Service provides a standardised platform for processing subscription and redemption orders and settlement and custody of investment funds among unit members which include investment houses, distributors, or custodians initiating the orders, and transfer agents receiving them.

Leveraging on the existing infrastructure, it will further expand the unit's service coverage and contribute to the safety and efficiency of Hong Kong's multi-dimensional financial infrastructure, reinforcing the city's role as the regional settlement hub and an international financial centre.

Noting investment funds have become an increasingly important international financial intermediation channel in addition to banking, equity and debt securities, the authority's Deputy Chief Executive Eddie Yue said there is, however, no standardised processing platform for investment funds in Hong Kong at present.

"The launch of the [service] will address the fund industry's need for an automated and standardised platform to make the process more efficient and reduce operational risks and back-office costs," he said.