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 Hang Seng Bank Limited (Hang Seng) as a clearing member. Hang Seng's membership took effect on 20 May of this year.
"We are pleased to welcome Hang Seng to our growing community of diverse clearing members," said Calvin Tai, HKEx's Head of Global Clearing (Asia). "OTC Clear is uniquely positioned to serve fixed income and currency derivatives markets participants from Hong Kong, Mainland China and the rest of the world. Our aim is to be the clearing hub of choice for the rapidly growing Renminbi derivatives market in Hong Kong by delivering capital efficiencies and world-class risk management services."
"With increasing Renminbi trading volumes and the rapid growth of Renminbi derivatives markets, Hong Kong has become a strategically important clearing hub for Renminbi derivatives markets," said Andrew Fung, Hang Seng Bank's Executive Director and Head of Global Banking and Markets. "We are delighted to have become a clearing member of OTC Clear. As the leading domestic bank in Hong Kong, Hang Seng will continue to contribute to the development of Renminbi derivatives markets through product innovation and diversification."
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.
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