LCH has also been approved as a designated central counterparty in respect of its SwapClear service for the purposes of the mandatory clearing obligation, for which the rules came into effect today.
LCH already has a number of Hong Kong-domiciled firms as members and clients clearing through its SwapClear and ForexClear services. Hong Kong’s clearing mandate will require certain market participants to centrally clear certain OTC interest rate derivatives denominated in the G4 and HKD currencies through a designated CCP, with the first trades being subject to the mandate from 1 July 2017.
Martin Pluves, Ltd CEO, LCH, said: “We are delighted to have been authorised as an Automated Trading Services provider and as a Designated Central Counterparty by the Securities and Futures Commission. Hong Kong is one of the most active derivatives markets in the world, and there is continued demand for our open access clearing service in the region.
As a global CCP, this recognition is a significant step in our growth in Asia Pacific and complements our existing licences across the world. We are committed to providing market participants with efficient clearing solutions across multiple asset classes, and we look forward to supporting customers in Hong Kong in meeting their clearing obligations.”