Hong Kong SFC to Launch Uncertified Securities Market (USM) Regime in 2026 November, USM Requirements Applicable to New Issuers from Time of Listing, Transition for All Securities to Take Place from 2026 to 2030, Uncertified Securities Market (USM) Reduces Need for Paper & Manual Processes
31st March 2026 | Hong Kong
The Hong Kong Securities and Futures Commission (SFC) has announced to launch the Uncertified Securities Market (USM) regime in 2026 November, with USM requirements applicable to new issuers from time of listing. The transition for all securities will take place from 2026 to 2030. The Uncertified Securities Market (USM) regime reduces the need for paper and manual processes. Announcement (30/3/26): “The Securities and Futures Commission (SFC) today announced that the uncertificated securities market (USM) regime is targeted to be launched on 16 November 2026. With broad market support and close collaboration with Hong Kong Exchanges and Clearing Limited (HKEX) and the Federation of Share Registrars Limited (FSR), major work streams for implementing USM are now at advanced stages following steady progress over the past year. Key developments to date include: 1) HKEX and relevant share registrars are at an advanced stage of developing and testing their USM-related systems and processes. Market participants will be invited to participate in testing in the coming months. 2) The SFC has reviewed and approved amendments to various HKEX rules and operational procedures that are necessary for implementing USM, which will be published by HKEX shortly. 3) HKEX and the FSR have also updated their respective Information Papers on USM to include key fee changes under the new regime (Note 1). These will also be published shortly. 4) The SFC is reviewing applications from six FSR members who seek to become Approved Securities Registrars (ASRs). Information on the status of their applications will be published on the SFC’s website in the coming weeks. 5) A number of publications and briefings have already been issued and conducted to facilitate the market’s understanding of the new regime and its implications. These efforts will continue in the run-up to the implementation of the USM regime and thereafter … … To bring the USM legislation into effect, a commencement notice will be tabled before the Legislative Council in the second quarter of 2026. Upon implementation, newly listed securities will be required to be issued in paperless form from the time of listing. For securities already listed prior to the launch date, issuers will be gradually integrated into the USM regime over a five-year period. Issuers and the market will receive advance notice regarding these arrangements. Investors who possess share certificates will have the flexibility to decide when they wish to convert their shares into paperless form. Intermediaries are encouraged to continue working closely with HKEX in preparing for USM. Given that the existing nominee structure in the Central Clearing and Settlement System (CCASS) will be retained, only limited changes will be made to CCASS processes, most notably the processes for depositing securities into, and withdrawing them out of, CCASS. These changes together with the revised fees may require some adjustments to intermediaries’ own business models and operational processes, as well as to their client and other documentation. Intermediaries should progress their preparation work as quickly as possible to ensure they are ready when the new regime takes effect in November. The SFC will continue to update its dedicated USM webpage to keep the market informed of the latest developments, while HKEX and the FSR will also continue to release information papers and conduct briefings for various stakeholders (Note 2).” In 2025 June, Hong Kong Exchange (HKEX) announced to launch the Uncertified Securities Market (USM) regime in early 2026, with USM requirements applicable to new issuers from early 2026. The transition for all securities will take place from 2026 to 2030. The Uncertified Securities Market (USM) regime reduces the need for paper and manual processes. In 2025 June, the Hong Kong Securities & Futures Commission (SFC) proposed fees limits for 3 types of fees for the Uncertified Securities Market (USM) regime with 1) USE set-up fee, 2) Dematerialisation fee & 3) Transfer & Registration fee.
“ Hong Kong SFC to Launch Uncertified Securities Market (USM) Regime in 2026 November, USM Requirements Applicable to New Issuers from Time of Listing, Transition for All Securities to Take Place from 2026 to 2030, Uncertified Securities Market (USM) Reduces Need for Paper & Manual Processes “
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Notes:
- The fee changes are in respect of: (i) depository and nominee fees charged by HKEX to market participants; and (ii) various fees that Approved Securities Registrars (ASRs) may charge registered holders and others. For (i), the fee changes have been approved by the SFC pursuant to section 76 of the Securities and Futures Ordinance. In doing so, the SFC took into account feedback received in 2025 and 2026 when the fee changes were presented to a wide section of the market. For (ii), following a public consultation in 2025, the SFC set limits in respect of three types of fees that an ASR may charge investors. Subsequently, the SFC also worked with HKEX and individual share registrars on appropriate levels for fees charged by ASRs in respect of securities deposited into or already in the Central Clearing and Settlement System (CCASS). Details will be incorporated in information papers to be published shortly by HKEX and the FSR respectively.
- In 2024, HKEX and FSR each released an information paper setting out the operational arrangements for USM and held briefings to explain the arrangements to the market. Additionally, HKEX published technical documents on its website to facilitate participants’ preparation.
Hong Kong Exchange (HKEX) Proposes Fees Limits for 3 Types of Fees for Uncertified Securities Market (USM) Regime with 1) USE Set-Up Fee, 2) Dematerialisation Fee & 3) Transfer & Registration Fee, Uncertified Securities Market (USM) Regime to Launch in Early 2026 with USM Requirements Applicable to New Issuers from Early 2026, Transition for All Securities to Take Place from 2026 to 2030, Uncertified Securities Market (USM) Reduces Need for Paper & Manual Processes
14th June – The Hong Kong Securities & Futures Commission (SFC) has proposed fees limits for 3 types of fees for the Uncertified Securities Market (USM) regime with 1) USE set-up fee, 2) Dematerialisation fee & 3) Transfer & Registration fee. Hong Kong SFC (13/6/25): “The Securities and Futures Commission (SFC) today published consultation conclusions on the limits for three types of fees that an approved securities registrar (ASR) may charge investors following the launch of the uncertificated securities market (USM) regime. Respondents to the consultation were generally supportive of the proposed fee limits as well as the USM initiative. The SFC will now proceed to incorporate the limits in the ASR Code. During the consultation, the SFC received a total of 11 submissions from industry associations, an intermediary and several individual investors. Among their key comments, respondents considered that the fee limits establish a fair and transparent fee structure, protect small shareholders’ interests, and make it easy for investors to estimate expenses, while also facilitating the development of USM and the securities market. The SFC has updated its dedicated USM webpage to include information about the limits in the sections on “frequently asked questions” and “list of consultation papers”. In the coming months, it will continue to collaborate with Hong Kong Exchanges and Clearing Limited and the Federation of Share Registrars Limited to raise stakeholders’ awareness and enhance understanding of the new regime.” In 2025 May, Hong Kong Exchange (HKEX) has announced to launch the Uncertified Securities Market (USM) regime in early 2026, with USM requirements applicable to new issuers from early 2026. The transition for all securities will take place from 2026 to 2030. The Uncertified Securities Market (USM) regime reduces the need for paper and manual processes. In 2025 April, the Hong Kong Securities and Futures Commission (SFC) new Uncertified Securities Market (USM) target implementation was reported to be on track to be launched in early 2026. Hong Kong SFC (17/4/25): “The Securities and Futures Commission (SFC) welcomes the enactment of all necessary legislation to pave the way for the implementation of the uncertificated securities market initiative (USM) in early 2026 subject to market readiness (Note 1). During the SFC’s recent consultations and engagement, a broad array of market participants have shown support and enthusiasm for this initiative, which will further increase efficiency in our securities market and also provide investors with better protection and trading convenience. To help the market better understand and prepare for this new initiative, the SFC also launched a dedicated USM webpage today to provide one-stop access to all useful information. The webpage includes a set of frequently asked questions to help listed issuers and investors better understand their rights and obligations under USM. Among the key changes under USM: 1) Newly listed securities will have to be in paperless form from the time of listing, meaning investors will no longer be able to hold these securities in paper form. 2) For existing securities, investors may continue to hold their paper certificates, which will not be invalidated. Meanwhile, specific deadlines will be set for each issuer to take steps to enable investors to hold and transfer the securities in their own names without paper (Note 2). Thereafter, issuers will no longer be able to issue new paper certificates … … The SFC is working with Hong Kong Exchanges and Clearing Limited (HKEX) and the Federation of Share Registrars Limited (Federation of Share Registrars) on a detailed five-year implementation timetable which will cover issuers from Hong Kong, Mainland China, Bermuda and Cayman Islands. In the coming months, the SFC will increase engagement efforts together with HKEX and the Federation of Share Registrars, to help stakeholders understand how the new regime operates, its benefits and impact, as well as next steps for their participation. In 2025 February, the Hong Kong Securities and Futures Commission (SFC) issued a consultation, proposing fee limits for Uncertified Securities Market (USM) to protect investors, simply processes & avoid confusion. The 3 fee types are 1) Setup-fee, 2) Dematerialisation fee & 3) Securities transfers fee. The target implementation for the Uncertified Securities Market (USM) is in early 2026.
Hong Kong Exchange (HKEX) to Launch Uncertified Securities Market (USM) Regime in Early 2026 with USM Requirements Applicable to New Issuers from Early 2026, Transition for All Securities to Take Place from 2026 to 2030, Uncertified Securities Market (USM) Reduces Need for Paper & Manual Processes
1st June – Hong Kong Exchange (HKEX) has announced to launch the Uncertified Securities Market (USM) regime in early 2026, with USM requirements applicable to new issuers from early 2026. The transition for all securities will take place from 2026 to 2030. The Uncertified Securities Market (USM) regime reduces the need for paper and manual processes. Announcement (30/5/25): “Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to provide updated reference materials for market participants and issuers in preparation for the implementation of the Uncertificated Securities Market (USM) regime in 2026. USM will apply to prescribed securities listed or to be listed on the Stock Exchange of Hong Kong Limited (the Exchange), reducing the need for paper and manual processes, facilitating straight-through-processing and elevating Hong Kong’s financial market infrastructure. Following the completion of relevant legislative processes, USM will become effective in early 2026 (USM Implementation Date), subject to market readiness. HKEX has been working closely with the Securities and Futures Commission (SFC) and the Federation of Share Registrars Limited to support operational readiness for the implementation of USM. Upon the full implementation of USM, nearly all Hong Kong-listed securities will be held in uncertificated form. This advancement aligns with global best practices and enhances market efficiency, providing investors with shorter processing times and the convenience of managing their portfolios electronically. Other market participants, including issuers and intermediaries, will also benefit from increased efficiencies through streamlined and automated processes … … The actions required and corresponding deadlines for new applicants to listing and listed issuers are summarised in the table below. To facilitate issuers in their preparation for USM implementation, the Exchange has published an Information Paper outlining the relevant changes to the Listing Rules. The Exchange welcomes drafting comments on the proposed changes to the Listing Rules, which has been prepared with reference to the Consultation Conclusions on Proposed Subsidiary Legislation, Code and Guidelines for Implementing an Uncertificated Securities Market In Hong Kong published by the SFC in July 2024, and other related USM legislative amendments. Any written comments are welcome by 30 June 2025 via e-mail to [email protected]. In addition, the Exchange will introduce new operational procedures for the transfer of participating securities to and from HKSCC Nominees Limited. There will also be a transition period where special arrangements will be in place with respect to the deposit, dematerialization and withdrawal of physical certificates prior to the relevant prescribed securities becoming participating securities. Investors and market participants should take note of the USM operational model and make appropriate preparations for the transition. Details of the transitional arrangements will be announced in due course. More information and other reference materials about USM implementation will be updated regularly and available on the HKEX website.” In 2025 April,the Hong Kong Securities and Futures Commission (SFC) new Uncertified Securities Market (USM) target implementation was reported to be on track to be launched in early 2026. Hong Kong SFC (17/4/25): “The Securities and Futures Commission (SFC) welcomes the enactment of all necessary legislation to pave the way for the implementation of the uncertificated securities market initiative (USM) in early 2026 subject to market readiness (Note 1). During the SFC’s recent consultations and engagement, a broad array of market participants have shown support and enthusiasm for this initiative, which will further increase efficiency in our securities market and also provide investors with better protection and trading convenience. To help the market better understand and prepare for this new initiative, the SFC also launched a dedicated USM webpage today to provide one-stop access to all useful information. The webpage includes a set of frequently asked questions to help listed issuers and investors better understand their rights and obligations under USM. Among the key changes under USM: 1) Newly listed securities will have to be in paperless form from the time of listing, meaning investors will no longer be able to hold these securities in paper form. 2) For existing securities, investors may continue to hold their paper certificates, which will not be invalidated. Meanwhile, specific deadlines will be set for each issuer to take steps to enable investors to hold and transfer the securities in their own names without paper (Note 2). Thereafter, issuers will no longer be able to issue new paper certificates … … The SFC is working with Hong Kong Exchanges and Clearing Limited (HKEX) and the Federation of Share Registrars Limited (Federation of Share Registrars) on a detailed five-year implementation timetable which will cover issuers from Hong Kong, Mainland China, Bermuda and Cayman Islands. In the coming months, the SFC will increase engagement efforts together with HKEX and the Federation of Share Registrars, to help stakeholders understand how the new regime operates, its benefits and impact, as well as next steps for their participation. In 2025 February, the Hong Kong Securities and Futures Commission (SFC) issued a consultation, proposing fee limits for Uncertified Securities Market (USM) to protect investors, simply processes & avoid confusion. The 3 fee types are 1) Setup-fee, 2) Dematerialisation fee & 3) Securities transfers fee. The target implementation for the Uncertified Securities Market (USM) is in early 2026.
Hong Kong SFC to Launch Uncertified Securities Market (USM) Regime with Target Implementation in Early 2026
18th April 2025- The Hong Kong Securities and Futures Commission (SFC) new Uncertified Securities Market (USM) target implementation is on track to be launched in early 2026. Hong Kong SFC (17/4/25): “The Securities and Futures Commission (SFC) welcomes the enactment of all necessary legislation to pave the way for the implementation of the uncertificated securities market initiative (USM) in early 2026 subject to market readiness (Note 1). During the SFC’s recent consultations and engagement, a broad array of market participants have shown support and enthusiasm for this initiative, which will further increase efficiency in our securities market and also provide investors with better protection and trading convenience. To help the market better understand and prepare for this new initiative, the SFC also launched a dedicated USM webpage today to provide one-stop access to all useful information. The webpage includes a set of frequently asked questions to help listed issuers and investors better understand their rights and obligations under USM. Among the key changes under USM: 1) Newly listed securities will have to be in paperless form from the time of listing, meaning investors will no longer be able to hold these securities in paper form. 2) For existing securities, investors may continue to hold their paper certificates, which will not be invalidated. Meanwhile, specific deadlines will be set for each issuer to take steps to enable investors to hold and transfer the securities in their own names without paper (Note 2). Thereafter, issuers will no longer be able to issue new paper certificates … … The SFC is working with Hong Kong Exchanges and Clearing Limited (HKEX) and the Federation of Share Registrars Limited (Federation of Share Registrars) on a detailed five-year implementation timetable which will cover issuers from Hong Kong, Mainland China, Bermuda and Cayman Islands. In the coming months, the SFC will increase engagement efforts together with HKEX and the Federation of Share Registrars, to help stakeholders understand how the new regime operates, its benefits and impact, as well as next steps for their participation. In 2025 February, the Hong Kong Securities and Futures Commission (SFC) issued a consultation, proposing fee limits for Uncertified Securities Market (USM) to protect investors, simply processes & avoid confusion. The 3 fee types are 1) Setup-fee, 2) Dematerialisation fee & 3) Securities transfers fee. The target implementation for the Uncertified Securities Market (USM) is in early 2026.
Notes:
- All USM-related primary law amendments had been enacted by end-2024, and the Legislative Council also completed its negative vetting process for all USM-related subsidiary legislation this week. All legislation has yet to come into effect. The specific implementation date of USM will be announced in due course.
- A five-year timetable will be set, with specific deadlines for each issuer, to facilitate more than 2,500 existing issuers’ gradual participation in USM.
Hong Kong SFC Proposes Fee Limits for Uncertified Securities Market (USM) to Protect Investors, Simply Processes & Avoid Confusion, 3 Fee Types are 1) Setup-Fee, 2) Dematerialisation Fee & 3) Securities Transfers Fee, Uncertified Securities Market (USM) Regime Target Implementation in Early 2026
25th February 2025 – The Hong Kong Securities and Futures Commission (SFC) has issued a consultation, proposing fee limits for Uncertified Securities Market (USM) to protect investors, simply processes & avoid confusion. The 3 fee types are 1) Setup-fee, 2) Dematerialisation fee & 3) Securities transfers fee. The target implementation for the Uncertified Securities Market (USM) is in early 2026. Hong Kong SFC (24/2/25): “The Securities and Futures Commission (SFC) today launched a consultation on proposed limits for three types of fees that an approved securities registrar (ASR) may charge under the upcoming uncertificated securities market (USM) regime in Hong Kong. The fees are: the facility set-up fee for investors to hold and manage uncertificated securities; dematerialisation fee; and fee for processing and registering securities transfers. The main reason for proposing limits on these fees is to provide a degree of protection to investors since they are not in a position to negotiate the fees. Also, aligning the charging basis will help simplify processes and avoid confusion for the market. In developing the limits, the SFC has sought to strike a balance among the costs shared by different stakeholders and maintain reasonable fees for investors. This will encourage investors’ early participation in USM and also ensure ASRs’ businesses remain commercially viable. The SFC encourages interested parties to provide feedback to the proposals during the consultation period, which will end on 23 April 2025. Subject to the legislative process of USM-related subsidiary legislation and the market readiness, the SFC targets to implement the USM regime in early 2026.”
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