Hong Kong
01 September 2016
Reporter: Drew Nicol

LCH gains CCP approval in Hong Kong


LCH has been authorised by the Hong Kong Securities and Futures Commission (SFC) to provide automated trading services in Hong Kong via its SwapClear and ForexClear services.

The clearinghouse’s SwapClear offering will also operate as a central counterparty (CCP) for transactions that require mandatory central clearing from 1 September.

Hong Kong’s new regulations will require certain market participants to centrally clear certain over-the-counter interest rate derivatives denominated in the G4 and HKD currencies through a designated CCP from 1 July 2017.

LCH confirmed that it already has a number of Hong Kong-domiciled firms as members and clients clearing through its SwapClear and ForexClear services.

Martin Pluves, Ltd CEO at LCH, said: “We are delighted to have been authorised as an automated trading services provider and as a designated CCP by the SFC. 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.”

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