Further Information in relation to Swap Connect

OTC Clearing Hong Kong Limited is pleased to announce the launch of the new clearing service for Swap Connect, a mutual access program between Hong Kong and Mainland China’s interbank interest rate swap markets. The program will initially cover CNY interest rate swaps with benchmark rate options of 7-day Repo (FR007), SHIBOR 3-Month (Shibor 3M) and SHIBOR Overnight (Shibor O/N), and will be accessible to Hong Kong and international investors through a connection between financial infrastructure institutions in both markets. OTC Clear is also offering a Fee Holiday for Swap Connect during its first year of implementation, waiving registration and maintenance fees for Clearing Members who clear the Standard Northbound Rates Derivatives Contracts for their House Business or their Clients. The registration fees and maintenance fees will be levied according to the prevailing outstanding notional amount prior to maturity after the Fee Holiday period. OTC Clear will bill the fees monthly in arrears and notify Clearing Members of any changes to the Fee Holiday via clearing circular. The Approved Trade Registration System designated by OTC Clear for submission of Original Northbound Transactions under Swap Connect is CIMBTS provided by China Foreign Exchange Trade System.


Clearing Service Launch of Swap Connect: https://www.hkex.com.hk/-/media/HKEX-Market/Services/Circulars-and-Notices/Participant-and-Members-Circulars/OTC-Clear/2023/OTCO2023005.pdf 

Introducing a Fee Holiday for Swap Connect: https://www.hkex.com.hk/-/media/HKEX-Market/Services/Circulars-and-Notices/Participant-and-Members-Circulars/OTC-Clear/2023/OTCO2023006.pdf 

The Approved Trade Registration Systems designated by OTC Clearing Hong Kong Limited (“OTC Clear”) for Swap Connect: https://www.hkex.com.hk/-/media/HKEX-Market/Services/Circulars-and-Notices/Participant-and-Members-Circulars/OTC-Clear/2023/OTCO2023007.pdf 


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