Bloomberg and HKEX Enhance Swap Connect Solutions

Bloomberg and Hong Kong Exchanges and Clearing (HKEX) have enhanced their Swap Connect solutions to better facilitate global investments in China’s onshore interbank interest rate swap (IRS) markets. The development coincides with the latest enhancements applicable to the Northbound Swap Connect schemes are introduced by China Foreign Exchange Trade System (CFETS), Shanghai Clearing House, and OTC Clearing Hong Kong. Bloomberg’s enhancements to its Swap Connect solution include new features that support IRS contracts with International Monetary Market (IMM) dates and the ability to offset existing contracts in global investors’ portfolios. Swap Connect is the OTC derivatives trading link between Mainland China and Hong Kong, which allows market participants to trade IRS. The new acceptance of mainstream IMM dates-based IRS contracts will enable the scheme to further meet investors’ risk management needs, according to Bloomberg.