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 Shanghai Pudong Development Bank as a clearing member. Shanghai Pudong Development Bank Co, Ltd Hong Kong Branch’s membership takes effect today (Friday).
"We are pleased to welcome Shanghai Pudong Development Bank, the first non-state-owned joint-stock Mainland commercial bank admitted to our service" said Calvin Tai, HKEx's Head of Global Clearing (Asia). "The admission of Shanghai Pudong Development Bank is a significant milestone for us as we work to build a broad membership base of financial institutions from Hong Kong, Mainland China and overseas.
"We're seeing very good traction from Mainland banks, which recognise OTC Clear's value proposition in connecting Mainland and global markets and in offering a Renminbi-focused development plan."
"We are very pleased to become a clearing member of OTC Clear," said Zhang Li, Chief Executive of Shanghai Pudong Development Bank, Hong Kong Branch. "Shanghai Pudong Development Bank has a clear goal of internationalisation and the Hong Kong Branch acts as an important platform for fulfilling our goal and a bridge to interact with international markets. With the tremendous increase of our transaction volume in global markets, we realise multiple benefits can be obtained by participation in central clearing in terms of efficient risk management, reduction of transaction costs and increasing recognition among trading counterparts. We believe that OTC Clear’s offering can help us to strengthen our service for both our inbound and outbound clients."
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, or TCCCP, 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 received No Action Relief 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.
Ends