CTBC Bank has gone live as a client clearing foreign exchange (FX) derivatives at the international clearing broker LCH ForexClear, with UBS acting as clearing broker for the trade.

ForexClear members and clients benefit from enhanced risk management, and margin, capital and operational efficiencies.

Implementation of phase five of the uncleared margin rules took effect in Taiwan from September 2021, impacting firms with derivatives of a notional value exceeding €50 billion (US$58.6 billion)

"Taiwan is an important financial hub for the derivatives,” says Rohit Verma, head of Asia-Pacific at LCH. “With the new rules coming in, firms are looking to optimise their derivatives portfolios through clearing at LCH. Phase 5 of the uncleared margin rules was implemented in September, and firms are already preparing for Phase 6, coming into effect September 2022."

Joe Chen, head of global trading, CTBC Bank, adds: "Clearing at LCH allows us to efficiently manage our risk while benefitting from multilateral netting and a more streamlined derivatives portfolio."