LCH SwapClear welcomes ICBC (Asia) as member
01 October 2025 China
Image: DoThi/stock.adobe.com
LCH has welcomed the Industrial and Commercial Bank of China (Asia), (ICBC (Asia)), the flagship overseas business of ICBC Group, as a direct clearing member of LCH SwapClear.
This membership grants ICBC (Asia) and, by extension, the broader ICBC Group full access to LCH SwapClear鈥檚 multi-currency clearing capabilities, reflecting the bank鈥檚 growth ambitions in the international derivatives market.
In addition, ICBC (Asia) is able to pledge USD and EUR-denominated Chinese government bonds to LCH, following an LCH initiative in May 2025 to make these collateral types eligible, unlocking new avenues for funding efficiency.
The bank also plans to join LCH鈥檚 ForexClear service by the end of the year, enabling it to leverage a dedicated clearing solution for foreign exchange derivatives.
Commenting on the joining, Xu Lei, deputy chief executive, ICBC (Asia), states: "Becoming a direct clearing member of LCH SwapClear is an important strategic initiative for ICBC (Asia), and reflects the substantial growth we have achieved in both transaction volumes and outstanding positions with LCH.
鈥淒irect membership will deliver enhanced risk management capabilities, improved cost efficiency, and access to deeper liquidity pools, which will directly strengthen our support for clients' expanding business needs.
鈥淲e welcome LCH鈥檚 progress in accepting Chinese government bonds as eligible collateral and look forward to further developments in this initiative.鈥�
Susi de Verdelon, CEO of LCH, adds: 鈥淸ICBC (Asia)鈥檚] membership represents a significant milestone in our ongoing commitment to supporting the growth of cleared derivatives across Asia and marks an exciting expansion of our network in the region.鈥�
LCH is committed to supporting the growth of banks in Asia Pacific, and expanding their role in the international derivatives market.
Since 2020, LCH has added 18 new members in Asia Pacific across the rates, FX, and repo markets, with more institutions having adopted its post-trade solutions.
ICBC (Asia)鈥檚 membership in LCH SwapClear expands the participation of Chinese banks, underscoring the deepening engagement of Chinese institutions with global clearing infrastructure, the firm says.
This development comes in the same year as the signing of a Memorandum of Understanding (MoU) between LCH and the Hong Kong Monetary Authority鈥檚 Central Moneymarkets Unit (CMU) OmniClear.
The MoU aims to enable full multilateral netting and guaranteed settlement of various CNH FX derivatives, thereby removing a significant barrier to increased trading activity, while exploring the inclusion of other currencies based on market adoption and demand.
This membership grants ICBC (Asia) and, by extension, the broader ICBC Group full access to LCH SwapClear鈥檚 multi-currency clearing capabilities, reflecting the bank鈥檚 growth ambitions in the international derivatives market.
In addition, ICBC (Asia) is able to pledge USD and EUR-denominated Chinese government bonds to LCH, following an LCH initiative in May 2025 to make these collateral types eligible, unlocking new avenues for funding efficiency.
The bank also plans to join LCH鈥檚 ForexClear service by the end of the year, enabling it to leverage a dedicated clearing solution for foreign exchange derivatives.
Commenting on the joining, Xu Lei, deputy chief executive, ICBC (Asia), states: "Becoming a direct clearing member of LCH SwapClear is an important strategic initiative for ICBC (Asia), and reflects the substantial growth we have achieved in both transaction volumes and outstanding positions with LCH.
鈥淒irect membership will deliver enhanced risk management capabilities, improved cost efficiency, and access to deeper liquidity pools, which will directly strengthen our support for clients' expanding business needs.
鈥淲e welcome LCH鈥檚 progress in accepting Chinese government bonds as eligible collateral and look forward to further developments in this initiative.鈥�
Susi de Verdelon, CEO of LCH, adds: 鈥淸ICBC (Asia)鈥檚] membership represents a significant milestone in our ongoing commitment to supporting the growth of cleared derivatives across Asia and marks an exciting expansion of our network in the region.鈥�
LCH is committed to supporting the growth of banks in Asia Pacific, and expanding their role in the international derivatives market.
Since 2020, LCH has added 18 new members in Asia Pacific across the rates, FX, and repo markets, with more institutions having adopted its post-trade solutions.
ICBC (Asia)鈥檚 membership in LCH SwapClear expands the participation of Chinese banks, underscoring the deepening engagement of Chinese institutions with global clearing infrastructure, the firm says.
This development comes in the same year as the signing of a Memorandum of Understanding (MoU) between LCH and the Hong Kong Monetary Authority鈥檚 Central Moneymarkets Unit (CMU) OmniClear.
The MoU aims to enable full multilateral netting and guaranteed settlement of various CNH FX derivatives, thereby removing a significant barrier to increased trading activity, while exploring the inclusion of other currencies based on market adoption and demand.
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