On March 21, Hong Kong Exchanges and Clearing announced that it has launched a client clearing service ahead of the first phase of mandatory clearing in Hong Kong set for July 1. The service provides OTC derivative market participants with the means to fulfill their regulatory obligations along with the credit and capital efficiency benefits of central clearing through the establishment of a clearing relationship with a member of OTC Clearing Hong Kong, the exchange’s clearing service for interest rate swaps and non-deliverable foreign exchange forwards. HKEX has also received approval from the Securities and Futures Commission to accept certain types of high-quality, non-cash collateral from its clearing participants to satisfy their margin requirements to OTC Clearing. These include government securities from the U.S., Hong Kong and China.
