Bank of China (UK) Limited, the firm’s UK entity, has joined LCH’s SwapClear service as its first clearing member from a Chinese banking group thus gaining access to clearing of interest rate derivatives. The bank will also act as a clearing broker, offering clearing services to its client base.
In 2015, Bank of China became the first Chinese banking group to offer Protected Payments System (PPS) services to LCH Ltd’s clearing members, it can now, LCH says, benefit from the efficiencies associated with clearing at the world’s largest multi-currency pool of interest rate derivatives liquidity.
“I’m delighted to welcome Bank of China as LCH’s first clearing member from a Chinese banking group, an important milestone for LCH in the Asia Pacific region,” says Kate Birchall, head of Asia Pacific, LCH Ltd. “This is another significant step in the ongoing collaboration between the markets of China and the UK. Over the past year we have expanded the number of currencies cleared at SwapClear and look forward to providing Bank of China and its clients access to LCH’s clearing services and global liquidity pool.”
Wenjian Fang, CEO, Bank of China UK, adds, “We are delighted to become the first Chinese clearing member of LCH. This is another significant milestone in our strategic partnership with LCH after BOC becoming the first Chinese PPS Bank of LCH. The clearing membership is a vital component of our group financial market infrastructure. It will enhance our group risk management, compliance capability and our product competitiveness. I believe we will continue to deepen our co-operation in more areas to promote the internationalisation of the Renminbi and Chinese institutions.”