Hong Kong’s OTC Clear admits Barclays Bank as clearing member

Maria Nikolova

All existing Clearing Members can now submit Original Standard Rates Derivatives Transactions and Original Standard Cross-currency Rates Derivatives Transactions transacted with Barclays Bank PLC for central clearing through OTC Clear.

Hong Kong’s OTC Clear today announces that it has approved the admission of Barclays Bank PLC as a Clearing Member.

All existing Clearing Members can now submit, upon bilateral agreement, Original Standard Rates Derivatives Transactions and Original Standard Cross-currency Rates Derivatives Transactions transacted with Barclays Bank PLC for central clearing through OTC Clear. Clearing Members are recommended to review their set-up in relevant Approved Trade Registration Systems (ATRS) to make sure that necessary trading and clearing permission has been properly assigned with the New Clearing Member.

The admission is effective today, January 6, 2020.

OTC Clearing Hong Kong Limited (OTC Clear) is a central counterparty (CCP) established by HKEX for the purpose of providing clearing and settlement services for OTC derivative transactions. OTC Clear is a 76% owned subsidiary of HKEX with 12 financial institutions as Founding Shareholders holding the remaining 24% of shares. OTC Clear currently provides clearing of interest rate swaps (IRS), non-deliverable currency forwards (NDF), cross currency swaps (CCS) and deliverable FX (DFX).

An entity willing to clear proprietary OTC derivatives transactions must initially apply for clearing membership. Prospective Clearing Members are required to fulfill various capital, legal and operational requirements to join the service. These requirements include minimum capital requirements, having operational and system capabilities for OTC derivatives settlement and access to at least one Approved Trade Registration System, having adequate risk management systems, policies and procedures in place, as well as Guarantee Fund contribution of HK$50 million.

After the addition of Barclays, the list of clearing members includes:

  • Agricultural Bank of China Limited;
  • Australia and New Zealand Banking Group Limited;
  • Bank of America, N.A.
  • Bank of China (Hong Kong) Limited;
  • Bank of Communications Co., Ltd.
  • Barclays Bank PLC;
  • BNP Paribas;
  • The Bank of East Asia, Limited;
  • CCB International Securities Limited;
  • China CITIC Bank International Limited;
  • China Minsheng Banking Corp., Ltd.
  • Citibank, N.A.
  • Credit Agricole Corporate and Investment Bank;
  • DBS Bank Ltd.
  • Deutsche Bank Aktiengesellschaft;
  • Hang Seng Bank, Limited;
  • The Hongkong and Shanghai Banking Corporation Limited;
  • Industrial and Commercial Bank of China (Asia) Limited;
  • Industrial Bank Co. Ltd.
  • JPMorgan Chase Bank, National Association;
  • Shanghai Pudong Development Bank Co., Ltd.
  • Societe Generale;
  • Standard Chartered Bank.

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