HKEX launches Swap Connect

The programme will forge connectivity between the capital markets of Hong Kong and China.

The Hong Kong Exchanges and Clearing Limited (HKEX) welcomed the launching of Swap Connect, a mutual access programme between Hong Kong and Mainland China’s interbank interest rate swap markets.

Under Swap Connect, the China Foreign Exchange Trade System (CFETS) and overseas electronic trading platforms recognised by the People's Bank of China (PBOC) would provide training services for the investors.

The programme will also give access to interest rate swaps at the initial stage, all priced, settled, and cleared in Renminbi (RMB).

HKEX, through its clearing subsidiary OTC Clear, will develop an underlying infrastructure for Swap Connect with China Foreign Exchange Trade System and Shanghai Clearing House and facilitate the delivery and operation of the programme.

Nicholas Aguzin, HKEX CEO, said the Swap Connect "will help forge stronger connectivity between Hong Kong and China's capital markets, further supporting their mutual development and strengthening its role as an international financial centre."

In a separate statement, the Bank of China (Hong Kong) said the Swap Connect will further propel participation from investors in the mainland Chinese bond market and push forward the RMB internationalisation.

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