OTC Clear welcomes CCB International Securities, its first Licensed Corporation clearing member

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 CCB International Securities Limited (CCB International Securities, or CCBIS) as a clearing member.  CCBIS's membership takes effect today (Tuesday).

"We are pleased to welcome CCBIS, the first Licensed Corporation* in Hong Kong to join our service," said Calvin Tai, HKEX's Head of Clearing.  "We are glad to see interest from entities beyond the banking sector in developing FIC (fixed income and currency) and OTC derivatives business. The admission of CCBIS not only signifies our success of broadening our membership base, but also indicates the growth of FIC and OTC derivatives activity across a variety of financial market stakeholders in Hong Kong and Mainland China.

"We understand that CCBIS plans to use of its membership in OTC Clear to offer client clearing service to its affiliates and other clients. We have the infrastructure for client clearing service and will launch it once it has regulatory approval."

"We are very pleased that our subsidiary CCB International Securities has become a clearing member of OTC Clear," said Dr Hu Zhanghong, Chairman and CEO of CCB International. "CCB International strives to provide clients with comprehensive financial services and support.  OTC Clear membership allows CCB International Securities to offer clients enhanced clearing services for China-related benchmark derivatives, which will reinforce our role in providing a good quality and efficient financial services platform to better meet the demands of investors participating in the Hong Kong, Mainland China and international markets, and also contribute to the overall development of Hong Kong’s offshore RMB market."

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 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 also obtains 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 denominated in RMB, Hong Kong Dollars, US Dollars and Euros, and non-deliverable forward currency swaps referencing RMB, Taiwan Dollars, Korean Won and the Indian Rupee.

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