Hong Kong’s OTC Clear secures license from Japanese FSA

Maria Nikolova

OTC Clear has received FSA’s approval to offer client clearing services to banks in Japan.

Hong Kong Exchanges and Clearing Limited (HKEX) has earlier today announced that its central counterparty subsidiary, OTC Clearing Hong Kong Limited (OTC Clear), has secured the approval to offer client clearing services to banks in Japan.

OTC Clear has obtained a license from the Financial Services Agency (FSA) of Japan to become a Foreign Financial Instruments Clearing Organisation. This allows OTC Clear it to offer clearing services to Japanese banks, which have shown strong demand in clearing cross currency swaps with OTC Clear. Via clearing cross currency swaps with HKEX, banks could significantly reduce their capital costs.

In addition to Japan, OTC Clear is also recognised by authorities in the US, European Union, and Australia to offer clearing services to their financial institutions.

Separately, OTC Clear has welcomed Barclays Bank PLC as its Clearing Member and 6th European Clearing Member.

Calvin Tai, HKEX Co-President and Chief Operating Officer, commented: “We are pleased to have Barclays join OTC Clear as a direct Clearing Member, leveraging our unique clearing solutions in the offshore renminbi, or CNH. As a global market leader in the Asian Time Zone, we help connect Mainland Chinese banks to the global markets.”

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.

“We are delighted to be a direct clearing member of HKEX’s OTC Clear,” said Kelvin Sze, Barclays’ Head of Macro Trading, Hong Kong. “OTC Clear has been a significant industry development with its well-established network of members. As one of the founding shareholders, we are looking forward to facilitating greater access for our counterparties in the region with this additional clearing channel to meet their offshore renminbi needs.”

Read this next

Digital Assets

Binance upgrades Bahrain license to offer full-suite of crypto services

The Central Bank of Bahrain (CBB) has granted Binance its Category 4 license as a fully-fledged crypto-asset service provider (CASP).

Digital Assets

BitMEX spot exchange hits $24 million in daily volume

The newly-launched spot market of crypto exchange BitMEX reported a record of $24 million in 24-hour trade activity on May 25.

Retail FX

Financial Commission certifies offering of trade copier 4X Solutions

The Financial Commission, an independent self-regulatory compliance specialist for the financial services industry, has certified the trading technology offered by trade copier 4X Solutions.

Industry News, Inside View

LIVE from Devexperts webinar for brokers on Fractional Trading

Finance Feeds is providing live coverage of the event that aims to help brokers discover fractional shares as a key tool for a successful brokerage business in today’s trading industry.

Industry News, Retail FX

ASIC celebrates retail ban on binary options as 68% of wholesale clients lose money

In the 13 months before the ban, between 74% and 77% of active retail clients lost money trading binary options. The product intervention order does not apply to wholesale clients.

Crypto Insider

Investing in crypto: how to stay away from weak players

The main reason behind the hacks of crypto exchanges is weak key management. For example, all 4 hacks that took place in 2021 were caused by the ability of hackers to obtain access to hot wallets. 

Retail FX

Vantage launches swap-free gold XAUUSD trades for all clients until end of July

“As the greenback continues to strengthen, we want to support traders who remain bullish on gold or seek short term trading opportunities amid the volatility”

Industry News

Broadridge launches ESG reporting solution ahead of European regulation SFDR

The Broadridge managed solution for EET adds to existing Broadridge services, including European PRIIPs Template, European MiFID Template, Solvency II Tripartite Template and many more across the European jurisdictions.

Industry News

iCapital to acquire embedded structured investment platform SIMON

SIMON’s platform, SPECTRUM, is a multi-dimensional allocation analysis and portfolio construction tool designed to evaluate how structured investments and/or annuities may fit into a portfolio.