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 BNP Paribas (BNP) as 17^th clearing member¹ and first member from France.

“We are pleased to welcome BNP as a member of  OTC Clear,” said Calvin Tai, HKEX’s Joint-Chief Operating Officer and Head of Clearing.  “The unique Renminbi (RMB) clearing solution for RMB-focused products like USD/CNH² Cross Currency Swaps and CNY³ 7-day Repo Non-Deliverable Swaps offered by OTC Clear is one of the key drivers for major market makers like BNP to join and make use of our service.”

“OTC Clear’s innovative product offering is expected to help us effectively manage our capital requirements and counterparty risk exposure for Renminbi OTC derivatives.  More importantly, OTC Clear’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 Clear,” said Stephane Ritz, Head of Trading, Global Markets APAC, BNP Paribas Hong Kong Branch.

Notes:

1. OTC Clear’s members include Agricultural Bank of China, Australia and New Zealand Banking Group, Bank of China (Hong Kong), Bank of Communications, The Bank of East Asia, BNP Paribas, CCB International Securities, China Minsheng Banking Corp, Citibank, DBS Bank, Deutsche Bank, Hang Seng Bank, The Hongkong and Shanghai Banking Corporation, Industrial and Commercial Bank of China (Asia), JPMorgan Chase Bank, Shanghai Pudong Development Bank and Standard Chartered Bank.
2. CNH – Offshore RMB
3. CNY – RMB

About OTC Clear

OTC Clear is a recognised clearing house under section 37 of Hong Kong's Securities and Futures Ordinance (SFO) and is designated as a central counterparty, or CCP, for the purposes of part IIIA of the SFO in respect of certain OTC derivative products. It is also recognised as a third country central counterparty by the European Securities and Markets Authority, which allows clearing houses located outside the European Union to offer clearing services to certain European financial institutions.  In addition, OTC Clear has obtained an order of exemption from registration as a Derivatives Clearing Organization (Exempted DCO status) from the US Commodity Futures Trading Commission that allows it to admit US banks as clearing members and is recognised as a prescribed facility under the regime for mandatory central clearing of OTC derivatives in Australia.

OTC Clear currently offers clearing services for interest rate swaps (IRS) denominated in Hong Kong Dollars, offshore Renminbi, US Dollars, and Euros, non-deliverable IRS in Renminbi (also known as seven-day repo swaps), Indian Rupee, Korean Won, Taiwan Dollars and Thai Baht, cross currency swaps in the US Dollar / offshore Renminbi currency pair and non-deliverable currency forwards, or NDFs, referencing Renminbi, Taiwan Dollars, Korean Won and the Indian Rupee. OTC Clear currently has 17 clearing members, including seven Hong Kong subsidiaries or branches of Chinese banks. Several other financial institutions are currently working on clearing membership admission arrangements. 

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