LCH Launches Non-Deliverable IRS Clearing for Ringgit

LCH SwapClear says it has cleared its inaugural Malaysian ringgit-denominated non-deliverable interest rate swaps (NDIRS).

Launched in response to growing demand among clearing members and clients in the Asia-Pacific region, LCH adds the milestone is underscored by the early adoption from leading Malaysian and global banks. CIMB and Maybank were among the first institutions to clear as clients, with HSBC serving as one of the clearing brokers.

The addition of the ringgit means LCH SwapClear’s product suite now spans across 28 currencies – it is the 11th APAC currency available for clearing. LCH says notional registration volumes in APAC-domiciled currencies grew by 165% from 2021 to 2024 to reach $166.8 trillion.

“We continue to see strong demand in the APAC region from market participants that are seeking capital and operational efficiencies across their rates portfolios, and this new product will help them to further achieve this,” says Susi de Verdelon, CEO of LCH Ltd.

Chu Kok Wei, CEO, group wholesale banking at CIMB, adds, “This milestone underscores the evolution of Malaysia’s financial markets and reflects our commitment to driving innovation and efficiency in the region. This new capability not only enhances our risk management toolkit, but also strengthens Malaysia’s position as a regional hub for capital market activity. We look forward to working closely with our clients, regulators, and international partners to deepen liquidity and elevate the Malaysian ringgit’s relevance in global portfolios.”

Hailing the launch as a “landmark”, Clement Cordier, head of derivatives clearing services at HSBC, says,“This paves the way for more efficient interest rate hedging and risk management.”

Farid Kairi, deputy group CEO, global banking, and managing director, global markets, at Maybank, adds, “We view this as a milestone towards building a deeper liquidity pool that is more robust and efficient, which translates to lower trading and hedging costs. It also complements efforts by Bank Negara Malaysia to promote broader and more inclusive participation, particularly amongst non-resident institutions and funds, in the ringgit-denominated derivatives markets.”