LCH receives regulatory approvals in Hong Kong

Report date
  • Hong Kong Securities and Futures Commission grants LCH designated CCP status and authorisation as an Automated Trading Services provider
  • Enables firms subject to Hong Kong clearing mandate to comply by clearing at LCH
  • Confirms LCH’s ongoing commitment to Asia Pacific

LCH Limited (LCH), a leading global clearing house, announced today that it has been authorised by the Hong Kong Securities and Futures Commission (SFC) to provide automated trading services in Hong Kong via its SwapClear and ForexClear services. LCH has also been approved as a designated central counterparty in respect of its SwapClear service for the purposes of the mandatory clearing obligation, for which the rules came into effect today.

LCH already has a number of Hong Kong-domiciled firms as members and clients clearing through its SwapClear and ForexClear services. Hong Kong’s clearing mandate will require certain market participants to centrally clear certain OTC interest rate derivatives denominated in the G4 and HKD currencies through a designated CCP, with the first trades being subject to the mandate from 1 July 2017.

Martin Pluves, Ltd CEO, LCH, said: “We are delighted to have been authorised as an Automated Trading Services provider and as a Designated Central Counterparty by the Securities and Futures Commission. Hong Kong is one of the most active derivatives markets in the world, and there is continued demand for our open access clearing service in the region. 

As a global CCP, this recognition is a significant step in our growth in Asia Pacific and complements our existing licences across the world. We are committed to providing market participants with efficient clearing solutions across multiple asset classes, and we look forward to supporting customers in Hong Kong in meeting their clearing obligations.”

For further information

Rhiannon Davies, Tel: +44 (0)20 7426 7523
Lucie Holloway, Tel: +44 (0)20 7797 1126

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About LCH

LCH is a group of leading multi-asset clearing houses that provides proven risk management capabilities across a range of asset classes. As demand for robust clearing services continues to grow, LCH is committed to maintaining the highest standards of risk management across all our services.

As the markets’ partner, LCH operates an open access model, offering a choice of execution venues, delivering unprecedented choice and efficiencies to the marketplace.

LCH operates clearing houses around the world, with clearing houses incorporated in the UK, France and the United States with additional offices in the Asia Pacific region. It offers clearing services across asset classes including OTC and listed rates; CDS and FX; fixed income; commodities; cash equities and equity derivatives.

LCH is majority owned by London Stock Exchange Group (LSE.L), an international markets infrastructure business that sits at the heart of the world's financial community.