HKEx: real-time settlement key to cross-currency swap clearing
JSCC and KRX also said to be working on cross-currency swap clearing offerings
A senior executive at Hong Kong Exchanges and Clearing (HKEx) has credited the central counterparty's (CCP) access to a multi-currency real-time gross settlement system (RTGS) as critical to its ability to a launch a cross-currency swap (CCS) clearing service – a first among major CCPs.
One of the main stumbling blocks to over-the-counter foreign exchange derivatives clearing thus far has been finding a way to deal with settlement risk: the danger that one counterparty exchanges its side of the
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