UOB Joins ForexClear and SwapClear

Singapore’s United Overseas Bank (UOB) has become the first bank in south-east Asia to join LCH’s ForexClear and SwapClear mechanisms as a direct clearing member.

LCH adds that UOB’s joining marks the completion of all Singapore local banking groups joining as direct members of SwapClear, the bank will also be the first member globally to join both clearing services simultaneously.

LCH says since 2021, SwapClear has recorded an 80% growth in APAC currencies or currency pairs notional cleared, while ForexClear has recorded 14% growth in notional cleared. In Q4 2023, LSEG will also go live with its new NDF matching platform in Singapore, incorporating clearing into the FX trade execution process for the first time.

“We are delighted to welcome UOB as a member of our SwapClear and ForexClear services, which is testament to the vibrant banking landscape in APAC and more specifically, Singapore,” says Isabelle Girolami, CEO of LCH Ltd. “APAC is a key strategic market and growth driver for LCH, and we are committed to enabling our members to benefit from economies of scale, along with margin, capital, and operational efficiencies that our services deliver. We look forward to continuing our collaboration with UOB as it looks to increase its clearing activity and benefit from LCH’s innovative solutions and diverse set of products available.”

Leslie Foo, group head of global markets, UOB, adds, “We are proud to be the first member globally to concurrently join LCH SwapClear and ForexClear. More importantly, we are the first ForexClear member in Southeast Asia as we seek to contribute to the growth of ASEAN. Our partnership with LCH will enable us to unlock further liquidity across multiple asset classes, particularly as regulations have placed greater financial resource requirements across our portfolios. We will also benefit from LCH’s world class risk management solutions and the capital and margin efficiencies that it will enable across our rates and FX clearing activity.”