OTC Clear has been authorized by the Securities and Futures Commission to make changes to its Procedures. These changes include discontinuing the clearing services for certain types of swaps referencing USD LIBOR and THBFIX, and introducing new ISDA compounding conventions for overnight floating rate options such as SOFR. The amendments will take effect from May 22, 2023. A marked-up version of the amendments can be downloaded from the HKEX website’s “Rule Update – OTC Clear Clearing Procedures” section. Clearing Members are advised to take note of these changes.
Marked-up version of OTC Clear Clearing Procedures: https://www.hkex.com.hk/-/media/HKEX-Market/Services/Rules-and-Forms-and-Fees/Rules/OTC-Clear/Rule-Update_Rules-and-Procedures-of-OTC-Clear/032_23_OTC_Clearing_Procedures_USD-LIBOR-to-SOFR-conversion-plan_e_markup.pdf