LCH launches Malaysian Ringgit non-deliverable swaps
04 April 2025 Malaysia
Image: Luciano_Mortula-LGM/stock.adobe.com
LCH SwapClear has cleared its inaugural Malaysian Ringgit-denominated non-deliverable interest rate swaps (MYR NDIRS).
The clearing house launched the swaps in response to a growing demand among clearing members and clients in APAC.
Susi de Verdelon, CEO of LCH, comments: “We continue to see strong demand in the APAC region from market participants that are seeking capital and operational efficiencies across their rates portfolios, and this new product will help them to further achieve this.”
Kuala Lumpur-headquartered banks CIMB and Maybank were among the first institutions to clear MYR NDIRS as clients, with HSBC serving as one of the clearing brokers.
“This new capability not only enhances our risk management toolkit, but also strengthens Malaysia's position as a regional hub for capital market activity. We look forward to working closely with our clients, regulators, and international partners to deepen liquidity and elevate the Malaysian ringgit's relevance in global portfolios,” says Chu Kok Wei, CEO of Group Wholesale Banking at CIMB.
Farid Kairi, deputy group CEO of Global Banking and managing director of Global Markets at Maybank, adds: “We view this as a milestone towards building a deeper liquidity pool that is more robust and efficient, which translates to lower trading and hedging costs.
“It also complements efforts by Bank Negara Malaysia to promote broader and more inclusive participation, particularly among non-resident institutions and funds, in the ringgit-denominated derivatives markets.”
The addition of the MYR aims to strengthen LCH SwapClear’s product suite, which now spans across 28 currencies.
According to the firm, MYR is the eleventh APAC currency available for clearing, with notional registration volumes in APAC-domiciled currencies growing by 165 per cent from 2021 to 2024 to reach US$166.8 trillion.
The clearing house launched the swaps in response to a growing demand among clearing members and clients in APAC.
Susi de Verdelon, CEO of LCH, comments: “We continue to see strong demand in the APAC region from market participants that are seeking capital and operational efficiencies across their rates portfolios, and this new product will help them to further achieve this.”
Kuala Lumpur-headquartered banks CIMB and Maybank were among the first institutions to clear MYR NDIRS as clients, with HSBC serving as one of the clearing brokers.
“This new capability not only enhances our risk management toolkit, but also strengthens Malaysia's position as a regional hub for capital market activity. We look forward to working closely with our clients, regulators, and international partners to deepen liquidity and elevate the Malaysian ringgit's relevance in global portfolios,” says Chu Kok Wei, CEO of Group Wholesale Banking at CIMB.
Farid Kairi, deputy group CEO of Global Banking and managing director of Global Markets at Maybank, adds: “We view this as a milestone towards building a deeper liquidity pool that is more robust and efficient, which translates to lower trading and hedging costs.
“It also complements efforts by Bank Negara Malaysia to promote broader and more inclusive participation, particularly among non-resident institutions and funds, in the ringgit-denominated derivatives markets.”
The addition of the MYR aims to strengthen LCH SwapClear’s product suite, which now spans across 28 currencies.
According to the firm, MYR is the eleventh APAC currency available for clearing, with notional registration volumes in APAC-domiciled currencies growing by 165 per cent from 2021 to 2024 to reach US$166.8 trillion.
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