HONG KONG: OTC Clear Announces Amendments to the Clearing Rules and Procedures

Friday December 27 2024

OTC Clearing Hong Kong Limited (OTC Clear) published a circular announced that the Securities and Futures Commission (SFC) has approved amendments to the Clearing Rules and the Clearing Procedures of OTC Clear for the purposes of:

1. enabling OTC Clear to accept bonds in the China Interbank Bond Market which are traded via Bond Connect issued by the Ministry of Finance of the People’s Republic China or a policy bank, as eligible non-cash collateral to cover initial margin requirements of northbound swap connect transactions
2. housekeeping.

The amendments will come into effect on Monday, 13^th January 2025.

The marked-up version of the amendments can be downloaded from the following sections of the HKEX website:

• Rule Update – OTC Clear Clearing Rules
• Rule Update – OTC Clear Clearing Procedures.

Click on the above link for further information