First Taiwan Client Clears at LCH ForexClear

MarketAxess Expands in Asia
  • CTBC Bank has gone live as a client clearing FX derivatives at LCH
  • UBS acted as clearing broker for the trade
  • ForexClear continues to grow its client base in Asia and globally – members and clients of ForexClear benefit from enhanced risk management, as well as margin, capital and operational efficiencies
  • Implementation of phase 5 of the uncleared margin rules (UMR) took effect from September 2021, impacting in-scope firms with derivatives of a notional value exceeding €50 billion

Rohit Verma, Head of Asia Pacific, LCH, said: “Taiwan is an important financial hub for the derivatives market and we are delighted to welcome CTBC Bank to the ForexClear service. With new uncleared margin rules phases coming in, firms are looking to optimise their derivatives portfolios through clearing at LCH. Phase 5 of the uncleared margin rules was implemented in September and firms are already preparing for Phase 6, coming into effect September 2022.”

Joe Chen, Head of Global Trading, CTBC Bank, said: “CTBC Bank has a strong history of innovation and we are pleased to be the first Taiwan bank to become a client at ForexClear. Clearing at LCH allows us to efficiently manage our risk while benefitting from multilateral netting and a more streamlined derivatives portfolio.”

Victor Gusak, Head of APAC Execution & Clearing, UBS AG, said: “This go live is a significant milestone for both the Taiwan market and UBS’s global clearing franchise. We pride ourselves on being a trusted partner for our clients and we look forward to continuing to support CTBC Bank and the wider market in accessing clearing.”

Source: LCH

Related articles

  1. The launch aims to encourage ESG and low carbon adoption within local capital markets.

  2. The Connect, between Singapore Exchange and National Stock Exchange of India, launched in July.

  3. Daily Email Feature

    ESG Poised to Rise in Asia

    Challenges for the buy side include finding the right ESG specialist and finding robust ESG data.

  4. Exchange groups are strengthening digital and network-related businesses.

  5. MarketAxess Expands in Asia

    Retail accounts for half of the trading volume at Taiwan Futures Exchange.