Mandatory clearing interest rate swaps could harm HK business

Author: | Published: 3 Jun 2011

Hong Kong risks driving out business when government plans to require mandatory clearing onshore are introduced in 2012.

A bank’s general counsel told IFLR the Hong Kong Financial Services and Treasury Bureau’s (FSTB) plans to establish mandatory clearing of interest rate swaps and non-deliverable forwards on the Hong Kong stock exchange (HKEx), could encourage businesses to move to Singapore or London.

"The mandatory clearing of trades in...