A subsidiary of Hong Kong Exchanges and Clearing (HKEX), OTC Clearing provides clearing services for over-the counter (OTC) derivatives.
BNP Paribas will join OTC Clearing members including Citibank, Deutsche Bank and JPMorgan Chase.
Calvin Tai, joint COO and head of clearing at HKEX, said: “We are pleased to welcome BNP as a member of OTC Clearing.”
He added: “The unique renminbi (RMB) clearing solution for RMB-focused products like US dollar-Chinese yuan offshore cross-currency swaps and Chinese yuan onshore seven-day repo non-deliverable swaps offered by OTC Clearing is one of the key drivers for major market makers like BNP Paribas to join and make use of our service.”
Stephane Ritz, head of trading and global markets for the Asia Pacific region at BNP Paribas’s Hong Kong branch, said: “OTC Clearing's innovative product offering is expected to help us effectively manage our capital requirements and counterparty risk exposure for RMB OTC derivatives.”
“More importantly, OTC Clearing’s extensive clearing member network, including major Chinese and local clearing members, will enable us to offer value-added services to many of our existing clients that have already joined OTC Clearing.”