HONG KONG: OTC Clear Announces Adoption of 2021 ISDA Interest Rate Derivatives Definitions

Monday July 31 2023

On 31^st July 2023, the OTC Clearing Hong Kong Limited (OTC Clear) published a circular announcing that it will adopt in its entirety Version 9.0 of the Main Book, Version 9.0 of the Floating Rate Matrix and Version 9.0 of the Settlement Matrix of the 2021 ISDA Interest Rate Derivatives Definitions as published by ISDA on 28^th July 2023 (the “New Version”) for the purposes of interpreting or implementing the Contract Terms of each Contract registered with OTC Clear irrespective of its Registration Time.

For the avoidance of doubt, Contracts that are registered with OTC Clear on or after the Effective Date will adopt the New Version and the Contract Terms of the Contracts that are registered with OTC Clear prior to the Effective Date will be amended pursuant to the New Version, with such amendment to take effect from the Effective Date.

The New Version include updates on the replacement of TARGET2 with the T2 system for the definition of “Target Settlement Day”.

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