LCH and CMU OmniClear Join Forces to Advance Global Clearing and Settlement of CNH Derivatives

LCH and CMU OmniClear Join Forces to Advance Global Clearing and Settlement of CNH Derivatives

(IN BRIEF) LCH Limited, part of LSEG, has signed an MoU with CMU OmniClear Limited to expand its ForexClear service to include CNH FX Options, Forwards, Swaps, and Spot transactions using Hong Kong’s PvP infrastructure. The offering, expected in early 2026 pending regulatory approval, will provide multilateral netting and settlement for CNH trades, with potential expansion to other currencies. LCH will also accept CNH-denominated Chinese Government Bonds as eligible collateral via CMU, building on its existing acceptance of USD and EUR-denominated CGBs. This partnership reinforces Hong Kong’s role in Renminbi internationalization and supports LCH’s strategy to enhance margin and capital efficiency in the Asia-Pacific region, where it has seen strong growth in ForexClear and SwapClear services.

(PRESS RELEASE) LONDON, 9-Jun-2025 — /EuropaWire/ — LCH Limited, a part of London Stock Exchange Group (LSEG), has entered into a Memorandum of Understanding (MoU) with CMU OmniClear Limited, a wholly owned subsidiary of the Exchange Fund managing the Central Moneymarkets Unit (CMU) on behalf of the Hong Kong Monetary Authority (HKMA). This strategic partnership aims to enhance the scope of LCH’s ForexClear service by incorporating CNH-denominated FX Options, Forwards, Swaps, and Spot transactions, leveraging Hong Kong’s Payment versus Payment (PvP) settlement capabilities.

The initiative introduces multilateral netting and guaranteed settlement for CNH FX products—breaking down one of the key barriers to higher trading volumes. Subject to regulatory approval, the new CNH offering is expected to go live in the first half of 2026. It will enable the settlement netting of trades conducted by entities incorporated outside of Hong Kong and could expand to include other currencies, depending on market demand and early adoption.

Driven by customer demand for more CNH product offerings, LCH also plans to broaden its eligible collateral base by accepting CNH-denominated Chinese Government Bonds (CGBs) in 2026. These will be settled and held within the CMU. This follows LCH’s recent move to accept USD- and EUR-denominated CGBs via Euroclear Bank, and aligns with its aim to support margin requirements efficiently as participation across the Asia-Pacific region grows.

LCH’s ongoing commitment to the Asia-Pacific derivatives market is underscored by past milestones, including the acceptance of Singapore Government Bonds and Malaysian Ringgit non-deliverable interest rate swaps clearing. The collaboration with CMU OmniClear represents another step forward in providing market participants with advanced risk management and capital-efficient solutions, particularly for CNH-denominated instruments.

Susi de Verdelon, CEO of LCH Limited, emphasized the importance of the partnership, stating:
“We are pleased to partner with CMU OmniClear, our member banks, and customers to advance CNH derivatives trading and settlement globally. APAC remains a strategic priority for us, and we are committed to supporting financial institutions with the capital, margin, and operational benefits of our services.”

Stanley Chan, CEO of CMU OmniClear Limited, noted:
“This collaboration demonstrates strong international investor demand for CNH-denominated assets and risk tools. By accepting CGBs held in Hong Kong’s depository infrastructure as eligible collateral outside the region, we reinforce Hong Kong’s position as the global centre for Renminbi-related financial activity.”

Industry leaders have voiced support for the collaboration:

Andrew Ng, Group Head of Global Financial Markets at DBS Bank, highlighted the exponential growth of CNH volumes and noted the importance of LCH’s initiatives for supporting regional derivatives markets.

Cheuk Wong, Head of Markets and Securities Services, Hong Kong at HSBC, commented on how the move will enhance market liquidity and increase CNH’s role as a global funding currency.

Wang Huabin, Deputy CEO of Bank of China (Hong Kong), emphasized the strategic value of introducing the USD/CNH currency pair and the importance of using CNH-denominated government bonds as collateral to optimize trading and netting.

With CNH FX Options and Forwards experiencing significant growth in trade volumes, LCH expects substantial interest from financial institutions seeking to optimize risk and capital usage. The company has seen its presence in the APAC region increase through ForexClear and SwapClear, with 24 direct members and over 180 clients—posting 31% and 24% year-over-year growth in trade volumes cleared in Q1, respectively.

About LCH

LCH builds strong relationships with credit, digital asset derivatives, equity, fixed income, foreign exchange (FX) and rates market participants to help drive innovative performance and deliver best-in-class risk management.

As a clearing member or client, partnering with us helps you increase capital and operational efficiency, while navigating an expanding and complex set of cross-border regulations, thanks to our experience and expertise.

In partnership with our stakeholders, we have helped the market transition to central clearing and continue to introduce innovative enhancements. Choose from a variety of solutions such as compression; sponsored clearing; credit index options clearing; contracts for differences clearing; and digital asset derivatives clearing. Our focus on innovation and our uncompromising commitment to service delivery makes LCH, an LSEG business, the natural choice of some of the world’s leading market participants globally.

About LSEG

LSEG (London Stock Exchange Group) is a leading global financial markets infrastructure and data provider, playing a vital social and economic role in the world’s financial system.

With our open approach, trusted expertise and global scale, we enable the sustainable growth and stability of our customers and their communities. We are dedicated partners with extensive experience, deep knowledge and a worldwide presence in data and analytics; indices; capital formation; and trade execution, clearing and risk management across multiple asset classes.

LSEG is headquartered in the United Kingdom, with significant operations in 65 countries across EMEA, North America, Latin America and Asia Pacific. We employ over 26,000 people globally, more than half located in Asia Pacific.

LSEG’s ticker symbol is LSEG.

Media Contact:

Press Office
Harriet Leatherbarrow / Jackson Au
Tel: +44 (0)20 7797 1222
Email: newsroom@lseg.com
Website: www.lseg.com

SOURCE: LSEG