Four HKEx Clearing Houses Receive Third-country CCP Recognition from ESMA
Corporate
04 May 2015
The Board of Supervisors of the European Securities and Markets Authority (ESMA) on 27 April 2015 adopted a decision to recognise all of Hong Kong Exchanges and Clearing Limited’s (HKEx) clearing houses (CCPs) for securities, stock options, futures and stock index options, and over-the-counter derivatives* as third-country CCPs under Chapter 4 of Title III of the European Market Infrastructure Regulations, or EMIR.
ESMA recognition allows CCPs located outside the European Union to offer clearing services to European financial institutions such as banks.
"This is a win for Hong Kong and is evidence that Hong Kong's legal and supervisory arrangements for its financial market intermediaries meet Europe's very high standards," said Calvin Tai, HKEx's Head of Global Clearing (Asia). "European banks are key players in Hong Kong and the recognition of our clearing houses ensures that European banks and other financial institutions can continue to actively participate in our markets.
"We sought this recognition because it is in line with our connectivity strategy," Mr Tai added. "We aim to strengthen our position as an international hub linking Mainland products with investors from the rest of the world and Mainland investors with products from the rest of the world."
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Hong Kong Securities Clearing Company Limited is responsible for clearing securities; HKFE Clearing Corporation Limited is responsible for clearing derivatives, excluding stock options; The SEHK Option Clearing House Limited is responsible for clearing stock options; and OTC Clearing Hong Kong Limited is responsible for clearing over-the-counter derivatives.All are subsidiaries of HKEx. |
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