OSTTRA has announced the successful completion of its first compression run for USD/CNH cross currency swaps (CCS) cleared through HKEX’s OTC Clear, using its OSTTRA triReduce service. The pilot, conducted on 28 August with five financial institutions including Bank of China (Hong Kong) and Crédit Agricole CIB, compressed a notional value of $5.8bn. The exercise highlights the potential for significant capital efficiencies and risk reduction in a market where HKEX’s OTC Clear remains the sole CCP offering clearing for this contract, with outstanding volumes reaching $255.2bn in July 2025.
The initiative reflects growing demand for compression services in Asia, with OSTTRA reporting that compressed notional value in APAC currencies more than doubled in the first half of 2025 compared to the same period in 2024. Contracts closed so far in 2025 reached $33.1tn, more than double the total for 2023. Following the pilot’s success, OSTTRA plans to run a larger USD/CNH compression cycle on HKEX’s OTC Clear in the coming months.
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