OTC Clear Launches Clearing for SOFR-HONIA Cross-currency Swaps

The SFC has approved the launch of clearing services for cross-currency interest rates swaps and basis swaps referencing HONIA and SOFR. 

Hong Kong’s SFC (Securities and Futures Commission) has granted approval to HKEX subsidiary OTC Clear to launch clearing services for cross-currency interest rates swaps and basis swaps referencing HONIA and SOFR.

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

Cross-currency interest rate swaps:

  • CNY (offshore) vs. USD-SOFR-COMPOUND (maximum tenor up to 11 years)
  • USD vs. HKD-HONIX-OIS-COMPOUND (maximum tenor up to 16 years)
  • HKD vs. USD-SOFR-COMPOUND (maximum tenor up to 16 years)

Cross-currency basis swaps:

  • CNH-HIBOR-TMA vs. USD-SOFR-COMPOUND (maximum tenor up to 11 years)
  • CNY-SHIBOR-Reuters vs. USD-SOFR-COMPOUND (maximum tenor up to 11 years)
  • HKD-HIBOR-HKAB vs. USD-SOFR-COMPOUND (maximum tenor up to 16 years)
  • HKD-HONIX-OIS-COMPOUND vs. USD-SOFR-COMPOUND (maximum tenor up to 16 years)

In addition, the SFC has granted approval for the launch of feature enhancements for cross currency interest rate swaps and deliverable interest rate swaps.

These enhancements are applicable to swaps for both house clearing and client clearing, OTC Clear says.

OTC Clear started accepting swaps with features enhancements also from Monday.

Refer to this circular for details.

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