Thursday July 21 2016
News Source: Global Exchanges
Focus: Stock Exchange Regulation
Type: General
Country: Hong Kong
Link: https://www.hkex.com.hk/eng/newsconsul/hkexnews/2016/1607212news.htm
OTC Clearing Hong Kong Limited (OTC Clear), a subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), has announced that the Securities and Futures Commission has granted approval of its clearing services for cross currency swaps. OTC Clear expects to launch the service in August of this year.
OTC Clear will initially provide clearing for swaps in the USD/CNH (US dollar/Offshore Renminbi, or RMB) currency pair. The swaps are traded actively in Hong Kong, where they are often used by issuers in the RMB – or dim sum – bond market to swap the proceeds into another currency.
OTC Clear provides a Payment versus Payment (PvP) settlement solution through the Real-Time Gross Settlement system operated by the Hong Kong Monetary Authority, which eliminates “Herstatt” or settlement risk.
Click on the link above for further details