Saturday 28th February 2015
NEWS TICKER: FEBRUARY 27TH 2015: The number of global weakest links increased to 154 (as of Feb. 17, 2015), with 15 additions and nine removals, according to Standard & Poor's Global Weakest Links And Default Rates: Greece's Uncertain Future Weighs On Increased Corporate Default Risk, published today on RatingsDirect. "This month, we added five Greece-based entities to the weakest links list; four 'CCC+' rated Greece-based banks and one 'B-' rated utility sector company were placed on CreditWatch with negative implications, as the European Central Bank (ECB) decided to lift the waiver on the eligibility of Greek government bonds in euro-system operations," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "The CreditWatch placements reflect increased default risk looming over some Greek institutions and broader economic pressure, because Greece recently secured a four-month extension on its bailout."

Hong Kong’s OTC Clear to welcome US clearing members

Friday, 09 May 2014
Hong Kong’s OTC Clear to welcome US clearing members OTC Clear, a subsidiary of Hong Kong Exchanges and Clearing (HKEx) will begin to offer its OTC derivatives clearing services to US clearing members, after receiving no-action relief from the US Commodity Futures Trading Commission (CFTC).  http://www.ftseglobalmarkets.com/

OTC Clear, a subsidiary of Hong Kong Exchanges and Clearing (HKEx) will begin to offer its OTC derivatives clearing services to US clearing members, after receiving no-action relief from the US Commodity Futures Trading Commission (CFTC). 

The go-ahead covers clearing of propriety trading by US members that involves interest rate swaps, denominated in Hong Kong dollars, renminbi (RMB), US dollars and euros, as well as non-deliverable currency forwards, denominated in RMB, Taiwan dollars, Korean won and Indian rupee.

The no-action letter is effective immediately until the earlier of December 31st 2014 or the date when the CFTC registers OTC Clear as a derivatives clearing organisation (DCO) or exempts it from registration.



"We are very pleased to receive the no-action relief from the CFTC because it will allow us to admit our US founding shareholders and other eligible US persons as clearing members," says Calvin Tai, HKEx's Head of Global Clearing (Asia).  "Our US founding shareholders have a significant role in the OTC derivatives market so this is a very important step forward for OTC Clear, which is a key part of our strategy to establish a strong fixed income and currency business as we expand into more asset classes.

"OTC Clear has also submitted an application to the European Securities and Markets Authority (ESMA) to seek regulatory recognition that will allow the clearing house to accept financial institutions incorporated in the European Union as its clearing members," Mr Tai said.

Two of OTC Clear's 12 founding shareholders are affiliates of US banks.  The founding shareholders together hold 25% of OTC Clear’s shares and HKEx holds the remaining 75%. 

Related News

Related Articles

Related Videos

  • Russia's derivatives and FX markets Friday, 01 July 2011 Russia's derivatives and FX markets
    Tim Bevan, director, global electronic trading services, Otkritie Securities Ltd discussed the Russian derivatives and FX markets during the Accessing…

Tweets by @DataLend

DataLend is a global securities finance market data provider covering 42,000+ unique securities globally with a total on-loan value of more than $1.8 trillion.

What do our tweets mean? See: http://bit.ly/18YlGjP