Linklaters was pleased to advise OTC Clearing Hong Kong Limited (OTC Clear), a subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), on the recent launch of its clearing service for cross currency swaps (CCS).

“We are delighted to have advised HKEX to develop an innovative product which is ground-breaking and provides real-time solution to market participants,” said Chin-Chong Liew, Partner, Linklaters.

Mr Liew said OTC Clear will initially provide clearing for swaps in the U.S. Dollar/Offshore Renminbi (or RMB) currency pair.

“OTC Clear is the first international clearing house in the world to provide clearing for these transactions. The service will help alleviate the ever increasing range of regulatory driven balance sheet and capital pressures,” Mr Liew added.

The total aggregate notional value of US$120m was cleared as of 4pm on the first day of the new service.

Linklaters acknowledges the work of capital markets partner Chin-Chong Liew, counsel Karen Lam and managing associates Derek Chua and Michael Hardy.

“The deal was a pure demonstration of legal innovation to provide a unique market solution,” Mr Liew concluded.