Tuesday May 21 2024
News Source: Global Exchanges
Focus: General - Global Exchanges
Type: General
Country: International
On 20th May 2024, the Hong Kong Exchanges and Clearing Limited (HKEX) announced that its clearing subsidiary OTC Clear has implemented three enhancements to Swap Connect in partnership with China Foreign Exchange Trade System (CFETS) and Shanghai Clearing House (SHCH). The enhancements will provide more flexibility for international investors to manage RMB interest rate risk through China’s onshore interbank markets.
The new enhancements include:
- The introduction of International Monetary Market (IMM) trades based on IMM dates (the third Wednesday of March, June, September and December) to align with common practices on international interest rate swap markets.
- The launch of solo compression service that enables participating institutions to compress trades with equal but opposite economics. Through this service, Swap Connect participants may unwind their original cleared trades before the maturity date, reducing their capital costs and increasing transaction settlement efficiency.
- The introduction of backdated trades, which allow trades with a past effective date and can be used with solo compression for trade unwinding.
Click on the above link for further information
