Now spanning 28 currencies, the addition of the Malaysian Ringgit further strengthens LCH SwapClear’s robust product suite
LSEG has announced that LCH SwapClear has cleared its inaugural Malaysian Ringgit-denominated non-deliverable interest rate swaps (MYR NDIRS). Launched in response to growing demand among clearing members and clients in the Asia-Pacific region, the milestone is underscored by the early adoption from leading Malaysian and global banks. CIMB and Maybank were among the first institutions to clear MYR NDIRS as clients, with HSBC serving as one of the clearing brokers.
The addition of the Malaysian Ringgit (MYR) further strengthens LCH SwapClear’s robust product suite, which now spans across 28 currencies. MYR is the eleventh APAC currency available for clearing, with notional registration volumes in APAC-domiciled currencies growing by 165% from 2021 to 2024 to reach US$166.8tn.
Susi de Verdelon, CEO, LCH Ltd, said: “We are proud to be building on our long-term commitment to the APAC market and extending our multi-asset class offering to now include the clearing of non-deliverable Malaysian Ringgit interest rate derivatives. 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.”
Chu Kok Wei, CEO, Group Wholesale Banking, CIMB, commented: “This milestone underscores the evolution of Malaysia’s financial markets and reflects our commitment to driving innovation and efficiency in the region. As a recognised leader in the MYR interest rate derivatives market, CIMB is proud to partner with LCH to clear MYR NDIRS, positioning us at the forefront of shaping a more globally integrated and resilient derivatives ecosystem. 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.”
A landmark development
According to Clement Cordier, Head of Derivatives Clearing Services, The Hongkong & Shanghai Banking Corporation Limited: “This is a landmark development supporting the growth of the MYR denominated interest rate derivatives market. We’re delighted to be amongst the first institutions to support client clearing of MYR NDIRS, further demonstrating our continued commitment to enhancements and innovations across capital markets within the Asia-Pacific region. This paves the way for more efficient interest rate hedging and risk management while further enabling us to support our clients with HSBC Real Clear, our market leading derivatives clearing solution.”
Farid Kairi, Deputy Group CEO, Global Banking, and Managing Director, Global Markets, Maybank, added: “As a leading Malaysian principal dealer and participant in the ASEAN markets, Maybank is pleased to participate in the launch of LCH-cleared Ringgit derivative transactions. 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.”
Learn more about the service here: LCH SwapClear