OTC Clearing Hong Kong Limited (OTC Clear) has received approval from the Securities and Futures Commission (SFC) for enhancements to the clearable product features for deliverable interest rate swaps (IRS) and cross currency swaps (CCS). The enhancements include acceptance of trades referencing “USD-SOFR” for registration, an update to the number of business days accepted for delayed payment, and acceptance of three new ISDA compounding conventions when referencing USD-SOFR. These enhancements will be applicable to both house and client clearing, and OTC Clear will begin accepting swaps with these enhanced features from 22 May 2023. Clearing members can refer to OTC Clear’s clearing procedures and revised OASIS report usage guide for details of the changes.
OTC Clearing Hong Kong Limited Clearing Procedures: https://www.hkex.com.hk/Services/Rules-and-Forms-and-Fees/Rules/OTC-Clear/Clearing-Procedures?sc_lang=en
OASIS Report Usage Guide: https://www.hkex.com.hk/Services/Clearing/OTC-Clear/Infrastructure?sc_lang=en
Resource: https://www.hkex.com.hk/News/Regulatory-Announcements/2023/230509news?sc_lang=en
