OREANDA-NEWS. OTC Clearing Hong Kong Limited (OTC Clear), a subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx) that provides clearing services for over-the-counter, or OTC, derivatives, welcomes Standard Chartered Bank as its newest clearing member today (Monday).

"We are pleased to have our first UK incorporated member on board," said Calvin Tai, HKEx's Head of Global Clearing (Asia).  "As one of the designated Primary Liquidity Providers of the offshore RMB market in Hong Kong, as well as a key stakeholder and market maker in regional OTC derivative markets, Standard Chartered Bank's participation significantly adds value to our service offering.

"We see an increasing interest in clearing membership from regional and global banks, as central clearing via OTC Clear can effectively help ameliorate some of the current credit and capital restrictions in RMB fixed income and currency derivative markets," Tai added.

"We are excited to join OTC Clear as a clearing member," said Gene K. Kim, Regional Head of Financial Markets for Greater China and North Asia at Standard Chartered.  "OTC Clear is the first OTC derivatives clearing house in Hong Kong and its offering to clear offshore RMB OTC products is in line with the strong growth and increasing volumes of RMB derivatives traded offshore. With the commencement of our membership, we look forward to contributing further to the development of the offshore RMB market."

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 (ESMA), 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.