LCH Obtains SFC Licence as an Automated Trading Services Provider
- The exchange is now authorised to provide automated trading services in Hong Kong via its SwapClear and ForexClear services.
LCH.Clearnet Limited (LCH), a Multi-Asset Multi-Asset Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Read this Term class Clearing House Clearing House A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e Read this Term, announced today that it has been authorised by the Hong Kong Securities and Futures Commission (SFC) to provide automated trading services in Hong Kong via its SwapClear and ForexClear services.
The latest licence represents several such instances at LCH.Clearnet in the last few months. Earlier this year, the group received formal approval in the form of a clearing licence from the Japanese Financial Services Agency (FSA), allowing the group to offer the clearing of non-yen OTC interest rate derivatives to Japanese financial institutions.
Designated CCP Status
LCH also been approved as a designated central counterparty for its SwapClear service for the mandatory clearing obligation, the rules of which came into effect today. LCH already has a number of Hong Kong-domiciled firms as members and clients clearing through its SwapClear and ForexClear services.
Hong Kong’s clearing mandate will require certain market participants to centrally clear certain OTC interest rate derivatives denominated in the G4 and HKD currencies through a designated CCP, with the first trades being subject to the mandate from 1 July 2017.
Martin Pluves, CEO at LCH, said: “We are delighted to have been authorised as an Automated Trading Services provider and as a Designated Central Counterparty by the Securities and Futures Commission. Hong Kong is one of the most active derivatives markets in the world, and there is continued demand for our open access clearing service in the region”.
As a global CCP, this authorisation is a major step in LCH's growth in Asia Pacific and complements its existing licences across the world as part of its commitment to providing market participants with efficient clearing solutions across multiple asset classes.
LCH.Clearnet Limited (LCH), a Multi-Asset Multi-Asset Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Read this Term class Clearing House Clearing House A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e Read this Term, announced today that it has been authorised by the Hong Kong Securities and Futures Commission (SFC) to provide automated trading services in Hong Kong via its SwapClear and ForexClear services.
The latest licence represents several such instances at LCH.Clearnet in the last few months. Earlier this year, the group received formal approval in the form of a clearing licence from the Japanese Financial Services Agency (FSA), allowing the group to offer the clearing of non-yen OTC interest rate derivatives to Japanese financial institutions.
Designated CCP Status
LCH also been approved as a designated central counterparty for its SwapClear service for the mandatory clearing obligation, the rules of which came into effect today. LCH already has a number of Hong Kong-domiciled firms as members and clients clearing through its SwapClear and ForexClear services.
Hong Kong’s clearing mandate will require certain market participants to centrally clear certain OTC interest rate derivatives denominated in the G4 and HKD currencies through a designated CCP, with the first trades being subject to the mandate from 1 July 2017.
Martin Pluves, CEO at LCH, said: “We are delighted to have been authorised as an Automated Trading Services provider and as a Designated Central Counterparty by the Securities and Futures Commission. Hong Kong is one of the most active derivatives markets in the world, and there is continued demand for our open access clearing service in the region”.
As a global CCP, this authorisation is a major step in LCH's growth in Asia Pacific and complements its existing licences across the world as part of its commitment to providing market participants with efficient clearing solutions across multiple asset classes.