The Ringgit-denominated non-deliverable interest rate swap was launched due to growing demand in Asia-Pacific.
Officials at LCH SwapClear report that they have cleared an inaugural Malaysian Ringgit-denominated non-deliverable interest rate swap instrument (MYR NDIRS), which was launched due to growing demand among clearing members and clients in the Asia-Pacific region.
The milestone transaction is “underscored by the early adoption from leading Malaysian and global banks. CIMB and Maybank were among the first institutions to clear MYR NDIRS as clients, with HSBC serving as one of the clearing brokers,” officials say.
The Malaysian Ringgit (MYR) instrument adds to the LCH SwapClear product suite, “which now spans across 28 currencies. MYR is the eleventh APAC currency available for clearing, with notional registration volumes in APAC-domiciled currencies growing by 165 percent from 2021 to 2024 to reach US$166.8 trillion,” officials say.
“This is a landmark development supporting the growth of the MYR-denominated interest rate derivatives market,” says Clement Cordier, head of derivatives clearing services at the Hongkong & Shanghai Banking Corp. Ltd. (HSBC), in a prepared statement. “This paves the way for more efficient interest rate hedging and risk management while further enabling us to support our clients with HSBC Real Clear,” Cordier adds.
LCH SwapClear, part of the LSEG Post Trade group, clears hundreds of interest rate products in 28 currencies, over tenors stretching from one month to 51 years, referencing dozens of different benchmark rates. “Our services to the buy-side community range from trade compression to portfolio margining, while broadening the types of collateral they can post as margin,” officials say.
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