OTC Clear welcomes Bank of Communications Hong Kong Branch as a Clearing Member
OREANDA-NEWS. OTC Clear welcomes Bank of Communications Hong Kong Branch as a Clearing Member.
OTC Clearing Hong Kong Limited (OTC Clear), a subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx) that was set up in 2013 to provide clearing services for over-the-counter, or OTC, derivatives, welcomes Bank of Communications Co., Ltd. Hong Kong Branch (Bank of Communications Hong Kong Branch) as a clearing member. Bank of Communications Hong Kong Branch's membership takes effect today (Tuesday).
"We are pleased to welcome Bank of Communications Hong Kong Branch as our first Mainland China-incorporated clearing member," said Calvin Tai, HKEx’s Head of Global Clearing Asia. "This is a big step in our effort to line up clearing members from Mainland China, Hong Kong, Europe and US, and to offer clearing services and infrastructure which meet the needs of members regulated by authorities in different jurisdictions."
"Our connections with institutions from Hong Kong, Mainland China and overseas give us a special niche. We also benefit from Hong Kong’s position as the premier offshore Renminbi (RMB) centre. As Chinese banks become more involved in global markets and RMB internationalisation continues, there will be good business opportunities for OTC Clear and its members."
OTC Clear is a recognised clearing house under section 37 of Hong Kong's Securities and Futures Ordinance. It is also recognised as a third country central counterparty (CCP) by the European Securities and Markets Authority, which allows CCPs located outside the European Union to offer clearing services to certain European financial institutions. In addition, OTC Clear has received No Action Relief from the US Commodity Futures Trading Commission that allows it to admit US banks as clearing members and is recognised as a prescribed facility under the regime for mandatory central clearing of OTC derivatives in Australia.
OTC Clear currently offers clearing services for interest rate swaps denominated in RMB, Hong Kong Dollars, US Dollars and Euros, and non-deliverable forward currency swaps referencing RMB, Taiwan Dollars, Korean Won and the Indian Rupee.