The volume of OTC Clearing Hong Kong Limited (OTC Clear), a subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), has surged nearly 500 per cent this year while it welcomes China CITIC Bank International (CNCBI) as its 22nd Clearing Member.

OTC Clear’s clearing volume increased to US$70.56 billion in the first seven months of this year from US$11.93 billion in the same period a year ago, mainly driven by cross currency swaps and the clearing volume from its Mainland bank Clearing Members. OTC Clear was set up in 2013 to provide clearing services for interest rate swaps, non-deliverable currency forwards, cross currency swaps (CCS) and deliverable foreign exchange. 

“We are glad to have China CITIC Bank International to join as a Clearing Member to clear both cross-currency swaps and interest rate swaps,” said Calvin Tai, HKEX’s Joint-Chief Operating Officer and Head of Clearing. “The market recognises the unique value of OTC Clear’s offshore RMB (Renminbi) clearing solutions and its role in connecting Mainland banks to the global banking network.”

“The OTC Clear membership further demonstrates CNCBI’s capability as a prominent financial services platform which provides value-adding derivatives solutions to customers, especially those with Greater China aspirations,” said CNCBI Executive Director, Alternate Chief Executive Officer and Treasurer Jeffery Bai.  “It will in turn cement CNCBI’s status as a key player in the offshore RMB market and HKD (Hong Kong dollar) market in Hong Kong by allowing the bank to make a more meaningful contribution to the future of the fast-paced markets.”