HKEX Clears First SOFR-HONIA Cross Currency Swaps

OTC Clear announced last week that it was launching clearing services for cross-currency interest rates swaps and basis swaps referencing HONIA and SOFR.

HKEX’s over-the-counter derivatives clearing subsidiary OTC Clear has cleared the market’s first SOFR-HONIA Cross Currency Swaps (CCS).

The first trade was executed on Tuesday (17 May) between BOCHK and HSBC.

Another SOFR-referencing USD/CNH CCS was also cleared between Bank of Communications’ Hong Kong Branch and Crédit Agricole CIB.

Both swaps carry a nominal value of CNY 100 million with a one-year term.

OTC Clear announced last week that it had been granted approval from the SFC (Securities and Futures Commission) to launch clearing services for interest rate CCS as well as basis swaps referencing HONIA and SOFR.

OTC Clear began accepting the new instruments from Monday (10 May).

HONIA is the alternative reference rate to HIBOR, while SOFR is increasingly being used as the new benchmark in the global derivatives market to replace LIBOR.

To Top
Share via
Copy link
Powered by Social Snap