The Hong Kong Securities and Futures Commission (SFC) has granted LCH Clearnet approval to become a central counterparty (CCP), and provide automated trading services in the region.
LCH will act as a designated CCP via its SwapClear service, so its clients who are subject to Hong Kong’s clearing mandate – which came into effect today – will be compliant.
The clearing mandate in Hong Kong requires participants to centrally clear certain over-the-counter interest rate derivatives.
Chief executive officer at LCH, Martin Pluves, said the authorisation of automated trading services and as a designated CCP, will allow the firm to meet the demand for its open access clearing service in the region.
He said: “As a global CCP, this recognition is a significant step in our growth in Asia Pacific and complements our existing licences across the world.”