OCBC has joined LCH SwapClear as a direct clearing member.
The London Stock Exchange Group (LSEG)-owned interest rate swap (IRS) clearing house will offer OCBC Group and its banking subsidiaries liquidity and interest rate products in the Singapore dollar and 26 other currencies.
The firms say this access will help OCBC support demand for interest rate hedging instruments from its corporate customers.
OCBC’s banking subsidiaries include OCBC Malaysia, OCBC Hong Kong, and OCBC NISP in Indonesia. The group says the membership reinforces its approach to support accelerated business growth arising from its focus on the ASEAN and Greater China regions.
The Singapore-based banking and financial services firm aims to scale up its transaction volumes and achieve greater cost efficiency and capital optimisation through its membership with LCH SwapClear.
The number of OCBC over-the-counter (OTC) IRS transactions cleared by LCH SwapClear, through the first eight months of 2023, has exceeded the number of such transactions for the entirety of 2022 by 10 per cent.
Kenneth Lai, head of global markets at OCBC, says: “Joining LCH as a direct clearing member is a natural step for OCBC as we have seen steady growth in transaction volumes and outstanding position size with LCH over the years.
“The benefits of better risk management, cost efficiency and deeper liquidity derived from being a direct clearing member are valuable. It will enable us to support our customers’ growth ambitions in ASEAN and Greater China.”
Isabelle Girolami, CEO of LCH, adds: “We look forward to partnering with OCBC in future product designs, together with other banks in Singapore, as we continue to grow our global offering and expand our presence across the APAC region.”
