LCH has expanded the range of offshore Chinese govies (CGBs) that it accepts as non-cash collateral, with Renminbi-denominated now eligible.
Euro- and US dollar-denominated CGBs have been accepted by the clearing house since May 2025.
The change has been made following global demand, LCH stated, and will give clearing members more flexibility and choice in their margin requirements. The firm also noted its increased focus on supporting regional market participation.
The bonds will be accepted on a bilateral basis and settled through Euroclear Bank.
Susi de Verdelon, CEO of LCH, commented, “[This] is an important step in the evolution of our offering for global members and their customers. We look forward to continuing to evolve our capabilities to support them as their participation in central clearing grows.”
Patrick Wu, head of macro and co-head of trading for APAC and the Middle East at Credit Agricole, added, “This milestone deepens the integration of Chinese assets into the international financial infrastructure and reflects the Bank’s commitment to supporting the internationalisation of Renminbi. The initiative also represents an important evolution in how APAC markets connect with global risk management and post-trade infrastructure.”
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