【Interoperability】Hong Kong Stock Exchange: Connects First Quarter Settlement Volume Reaches 1.77 Trillion RMB, a New Record

The Hong Kong Exchanges and Clearing Limited (00388) announced that this year’s first quarter over-the-counter settlement reached a new high. Among them, the cross-currency swaps (CCS) and the Swap Connect settlement volumes were $42.5 billion and RMB 1.77 trillion, respectively.

In March alone, the number of Swap Connect settlement trades exceeded 1,461, with a notional principal amount of RMB 820.8 billion, setting a new record.

There are 118 offshore institutions participating in Swap Connect.

The HKEX said that the strong momentum highlights the importance of Swap Connect in promoting investors’ access to China’s onshore interest rate markets. At present, 118 offshore institutions participate in Swap Connect, providing international investors with a channel to invest in China’s interbank interest rate swap market using their own trading and settlement practices.

Interest rate swaps, also known as interest rate derivatives, are a type of over-the-counter derivative instrument that can be used to manage interest rate change risk. The two trading parties exchange interest payments with different interest rates on the same principal—for example, one party can receive a fixed-rate interest payment on that principal, while the other party receives a floating-rate interest payment on that principal.

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