LCH gains CCP status in Hong Kong

Hong Kong’s SFC grants LCH CCP status and allows it to provide automated trading services in the region.

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.”