Industrial and Commercial Bank of China (ICBC) has joined LCH, part of LSEG’s Markets Division, as a direct clearing member, with the broader ICBC Group set to have full access to LCH SwapClear’s multi-currency clearing capabilities.
Xu Lei, deputy chief executive, ICBC (Asia), said: ”Becoming a direct clearing member of LCH SwapClear is an important strategic initiative for ICBC (Asia), and reflects the substantial growth we have achieved in both transaction volumes and outstanding positions with LCH.”
Currently, ICBC is looking to bolster its presence in the international derivatives market, with plans also in place for the bank’s upcoming membership in ForexClear.
Lei added: “Direct membership will deliver enhanced risk management capabilities, improved cost efficiency, and access to deeper liquidity pools, which will directly strengthen our support for clients’ expanding business needs.
“We welcome LCH’s progress in accepting Chinese Government Bonds as eligible collateral and look forward to further developments in this initiative.”
The membership also means that ICBC (Asia) is able to pledge USD- and EUR-denominated Chinese Government Bonds to LCH as eligible collateral.
To date, LCH has added 18 new members in Asia Pacific across the rates, FX, and repo markets, and plans to continue supporting Asia Pacific banks.
Susi de Verdelon, chief executive, LCH, said: “Their membership represents a significant milestone in our ongoing commitment to supporting the growth of cleared derivatives across Asia and marks an exciting expansion of our network in the region.
“We look forward to collaborating with ICBC (Asia) on future product innovation that addresses the evolving needs of market participants across the region.”