OTC Clear, HKEX’s clearing house for over-the-counter derivatives, had a very busy year in 2018. Volumes were up across the board with total clearing volumes more than tripling from levels in the previous year.
Building on its growth in 2018, OTC Clear continues to work to expand its clearing and settlement services, and has recently added the Traiana CCP Connect Platform as its third Approved Trade Registration System, to capture OTC derivatives transactions. Traiana provides trade processing services for the OTC derivatives and foreign currency markets.
The addition of the Traiana trade affirmation platform provides support to enable OTC Clear’s Deliverable FX (DFX) clearing function. On 17 January, OTC Clear’s clearing members executed the first USD-CNH Deliverable FX Swap processed by OTC Clear.
Having central clearing services for Cross Currency Swap (CCS) and DFX together provide an effective solution to reduce the settlement risks that are inherently involved in the bilateral trading of these products, reduce capital requirements, and mitigate the potential wrong way risks from currency devaluation.
Please click here for further information on the services provided by OTC Clear.
