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 Deutsche Bank Aktiengesellschaft, Hong Kong Branch (Deutsche Bank) as a clearing member. Deutsche Bank's membership takes effect today (Thursday).
"We are pleased to welcome Deutsche Bank as our first European clearing member following OTC Clear's recognition by ESMA as a third country CCP this April," said Calvin Tai, HKEx's Head of Global Clearing (Asia). "European banks are key participants in the developing Hong Kong-based Renminbi derivatives markets and Deutsche Bank is an important stakeholder in our plans to bring together market players from Hong Kong, Mainland China, Europe and the United States to create a strategically important and dynamic clearing hub, servicing regional fixed income and currency derivative markets."
"We are proud to be a long-standing partner in the ongoing development of Hong Kong as a global financial centre, and view OTC clearing as a critical piece in Hong Kong's increasingly important and connected role in the world’s capital markets," said Peter Lo, Deutsche Bank Chief Country Officer for Hong Kong. "We have seen strong demand for Renminbi services, which we consider critical to our success as a preferred banking partner to our clients globally. We are therefore very pleased to have become a clearing member of OTC Clear as we strive to offer a full suite of Renminbi solutions across all asset classes, and look forward to contributing to the development of the Renminbi derivatives market here."
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.
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