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Emerging Markets

HK Clearinghouse Likely To Focus On RMB

The long term focus of the recently announced over-the-counter derivative clearinghouse coming to the Hong Kong Exchange will be likely renminbi-denominated derivatives. That’s despite the fact the first products to be cleared will be interest rate swaps and non-deliverable forwards.

  • 14 Dec 2010
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--Eleni Himaras

The long term focus of the recently announced over-the-counter derivative clearinghouse coming to the Hong Kong Exchange will be likely renminbi-denominated derivatives. That’s despite the fact the first products to be cleared will be interest rate swaps and non-deliverable forwards.

“The big prize here is not necessarily NDF or IRS, it’s OTC RMB products,” said Sundeep Bhandari, chair of the Treasury Markets Association over-the-counter derivatives clearing feasibility taskforce and regional head of global markets for Northeast Asia at Standard Chartered in Hong Kong. “That’s what we’re building for.” Last week, the HKEx announced it would start an OTC derivative clearinghouse by the end of 2012, in tandem with an announcement from the Hong Kong Monetary Authority that it would be creating an OTC derivative trade repository.

According to a presentation by Charles Li, chief executive of the HKEx, the IRS and NDF clearing, will be followed by additional fx derivatives and equity derivatives. The targeted participants are international banks, mainland banks in Hong Kong and local banks.

The Singapore Exchange recently launched the first over-the-counter derivatives clearinghouse in Asia, clearing vanilla interest rate swaps denominated in U.S. and Singapore dollars. When asked about possible competition between the two clearinghouses, Bhandari said the RMB market in Hong Kong would allow the new clearinghouse to operate in a separate market from its Singapore counterpart. “I think both will compete in different tangents, he said. “I think the strategic value addition here is RMB.”

Between now and implementation, the HKEx will also be working with its dedicated HKD180 million (USD23.14 million) in internal seed money to get the project running. “HKEx is considering different operating models and shareholder structures for the clearing house,” said an HKEx spokesman. “HKEx will consider partners if they can help attract participation of international and Mainland players in HKEx’s market, bring OTC clearing and risk management skills and expertise, and license their clearing systems and/or risk management systems to HKEx.”

  • 14 Dec 2010

Bookrunners of International Emerging Market DCM

Rank Lead Manager Amount $m No of issues Share %
1 Citi 17,937.65 77 10.67%
2 HSBC 17,202.71 88 10.24%
3 JPMorgan 15,720.00 64 9.35%
4 Deutsche Bank 13,208.40 58 7.86%
5 Bank of America Merrill Lynch 10,749.43 54 6.40%

Bookrunners of LatAm Emerging Market DCM

Rank Lead Manager Amount $m No of issues Share %
1 HSBC 6,221.38 14 11.59%
2 JPMorgan 5,140.67 18 9.58%
3 Bank of America Merrill Lynch 4,497.27 18 8.38%
4 Deutsche Bank 4,264.56 14 7.95%
5 Credit Suisse 4,132.73 8 7.70%

Bookrunners of CEEMEA International Bonds

Rank Lead Manager Amount $m No of issues Share %
1 Citi 6,674.27 20 14.95%
2 JPMorgan 5,884.96 16 13.18%
3 Barclays 4,728.57 10 10.59%
4 Deutsche Bank 4,044.06 10 9.06%
5 Goldman Sachs 3,229.17 5 7.23%

EMEA M&A Revenue

Rank Lead Manager Amount $m No of issues Share %
1 Goldman Sachs 182.99 41 13.58%
2 Bank of America Merrill Lynch 90.70 28 6.73%
3 JPMorgan 88.18 43 6.54%
4 Deutsche Bank 85.13 29 6.32%
5 Lazard 80.06 43 5.94%

Bookrunners of Central and Eastern Europe: Loans

Rank Lead Manager Amount $m No of issues Share %
1 ING 382.49 5 8.60%
2 Commerzbank Group 292.65 4 6.58%
3 UniCredit 275.33 3 6.19%
4 SG Corporate & Investment Banking 271.81 3 6.11%
5 Raiffeisen Bank International AG 207.65 3 4.67%

Bookrunners of India DCM

Rank Lead Manager Amount $m No of issues Share %
1 Standard Chartered Bank 1,072.16 12 9.37%
2 Deutsche Bank 1,008.26 15 8.82%
3 AXIS Bank 1,000.88 27 8.75%
4 Barclays 699.87 9 6.12%
5 Trust Investment Advisors 698.72 32 6.11%