HONG KONG – 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 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).
Tai added that the admission of Shanghai Pudong Development Bank is a significant milestone for OTC Clear as it works to build a broad membership base of financial institutions from Hong Kong, Mainland China and overseas.
“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.
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. – BusinessNewsAsia.com