International clearing house LCH.Clearnet, majority owned by London Stock Exchange Group Plc (LON:LSE), has announced that it has been authorised by the Hong Kong Securities and Futures Commission (SFC) to provide automated trading services in Hong Kong via its SwapClear and ForexClear services.
LCH has also been approved as a designated central counterparty in respect of its SwapClear service for the purposes of the mandatory clearing obligation, for which the rules came into effect today.
LCH already has a number of Hong Kong-domiciled firms as members and clients clearing through its SwapClear and ForexClear services. Hong Kong’s clearing mandate will require certain market participants to centrally clear certain OTC interest rate derivatives denominated in the G4 and HKD currencies through a designated CCP, with the first trades being subject to the mandate from July 1, 2017.
Martin Pluves, CEO of LCH said:
We are delighted to have been authorised as an Automated Trading Services provider and as a Designated Central Counterparty by the Securities and Futures Commission. Hong Kong is one of the most active derivatives markets in the world, and there is continued demand for our open access clearing service in the region.
As a global CCP, this recognition is a significant step in our growth in Asia Pacific and complements our existing licences across the world. We are committed to providing market participants with efficient clearing solutions across multiple asset classes, and we look forward to supporting customers in Hong Kong in meeting their clearing obligations.
LCH operates clearing houses around the world, with clearing houses incorporated in the UK, France and the United States with additional offices in the Asia Pacific region. It offers clearing services across asset classes including OTC and listed rates; CDS and FX; fixed income; commodities; cash equities and equity derivatives.