OSTTRA has moved to expand its compression with the addition of USD/CNH cross currency swaps to its arsenal.
The post-trade solutions provider confirmed that it completed its first compression run for the cross currency swaps in August, cleared via HKEX’s OTC Clear service.
Five financial institutions took part including Bank of China (Hong Kong) and Crédit Agricole CIB and a total of $5.8bn in notional value was compressed during the pilot run.
The firm said the move comes amid a significant growth in demand for compression services in Asia.
“As CNH activity increases in the region, this service will provide valuable capital and operational efficiencies for banks needing to manage risk in this fast-growing currency pair,” said Erik Petri, head of optimisation, OSTTRA.
OSTTRA cited that compressed notional value more than doubling in the first six months of 2025 compared to the same period last year.
Elsewhere, the notional value of APAC currency contracts closed in 2025 to date surpassed $33.1 trillion.
OSTTRA said it intends to conduct another compression run for the currency pair with a larger group of market participants in the coming months on HKEX’s OTC Clear.
John Luk, head of emerging markets trading for Greater China, Crédit Agricole CIB said: “As an active player in HKEX’s OTC Clear, we are pleased that the inaugural cleared USD/CNH CCS – a key client offering of our bank – compression service has been introduced to the local market. Crédit Agricole CIB is a prominent proponent of compression for its cost and risk mitigation benefits, which also aligns with our operational strategy for our market activities franchise.”
