HSBC in China has facilitated the first interest rate swap trade by an overseas institutional investor through the central counterparty clearing model in the China interbank market. This new channel allows HSBC’s international clients to tap into the world’s second largest bond market while also adding to their risk mitigation capabilities.
HSBC acted as the counterparty and bond settlement agent for the trade conducted by Dymon Asia Capital (Singapore) Pte. Ltd, an investment management firm in Asia. Bank of Communications provided clearing services to Dymon Asia as one of the central counterparty clearing members appointed by the clearing house.