Hana Bank Becomes a Member of LCH ForexClear

Seoul-headquartered Hana Bank has become the first South Korean bank to have its foreign exchange (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) forwards cleared through LCH ForexClear.

Announced on Wednesday, the Korean lender has become a clearing client of the global clearinghouse LCH for its FX derivatives. The press release shared with Finance Magnates detailed that Societe Generale is acting as the clearing broker for Hana Bank.

“We are proud to offer our customers a wide range of FX services. Having access to ForexClear allows us to effectively manage our risk while benefiting from a number of efficiencies associated with clearing,” said Youngsun Moon, Head of FX & Derivatives Trading Section at Hana Bank.

“We are pleased to be the first Korean bank to use the service, and believe this will help us to expand our position as the best Foreign Exchange Provider in Korea to the global market.”

Clearing FX Derivatives

ForexClear is LCH’s forex derivatives clearing service. The clearinghouse added eight FX forward currency pairs on the platform in October 2019 and the first CCP (central counterparty clearing) to clear forex forwards.

Hana Bank highlighted that as a ForexClear member and client it will benefit from enhanced Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term, margin, capital and operational efficiencies.

“As phase 5 of the uncleared margin rules rapidly approaches, we are seeing increased demand for clearing from firms looking to optimize their derivatives portfolios,” James Pearson, Head of LCH’s ForexClear, added. “South Korea has a vibrant FX and derivatives market, and we are delighted to welcome Hana Bank as the first from the country to clear at ForexClear.”

Eric Jungers, Head of Prime Asia at Societe Generale, commented: “The [Hana Bank] transaction is a testament to our Prime Service and OTC Clearing capability in Asia, a key region for the development of our activities. We look forward to continuing supporting our clients in the region in their pursuit of capital and operational efficiencies.”