With this move, JP Morgan has become the first in Asia to introduce CNH/HKD and JPY/HKD as underlying currency pairs. The development is set to enable investors to further diversify their portfolios, offering an alternative investment tool. 

Cedric Cheung, head of listed structured products sales for Asia at JP Morgan, explained: “FX Warrants as a hedging instrument on currency risk are flexible and they do not require any collateral or margin requirements. The downside risk is limited to the warrants premium whereas the upside potential can be captured.

“This makes FX warrants an attractive and convenient solution for investors looking to mitigate against currency fluctuations and optimise their global asset allocation.”

The new offering comes off the back of increased client demand according to the business, with investors increasingly seeking currency pairs with foreign currencies as the base currency and HKD as the quote currency.

The FX warrants allow investors to analyse currency movements and enhances their ability to capitalise on directional views as well as benefitting clients with overseas assets to more easily manage their FX risk.

Read more: FX hedging behaviours shifting as firms take an ever more proactive approach to risk

Yowjie Chien, global head of warrants and options electronic client solutions at JP Morgan, said: “As FX Warrants are linked to currency movements, they typically have lower implied volatility, resulting in a more cost-effective buying option. Additionally, the FX warrants also offer investors an efficient way to hedge their currency exposure.

“The launch of new HKD pair FX warrants reinforces JP Morgan’s commitment as a leading issuer of derivative products in Hong Kong. We are continuously innovating to meet the evolving needs of investors in changing market conditions, and to expand their investment options.”

In addition, JP Morgan has confirmed that over the next few months it expects to issue five more currency pairs.

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The expanded offering compliments data from Tokyo Stock Exchange which is already offered in its product suite.

BMLL has stressed the importance of global coverage in today’s markets and follows the recent addition of Level 3 data from Cboe Global Markets Japan, Japannext Co. and SGX Group announced last month.

“Our clients have a global view of market quality, liquidity and orderbook dynamics to ultimately make better informed decisions on the markets they trade and the venues they run,” said BMLL in a social media post.

The move follows the addition of the Johannesburg Stock Exchange (JSE) to its exchange clients list, increasing BMLL’s data coverage, while providing JSE with Level 3 data for venue and liquidity analytics.

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The Hong Kong Stock Exchange’s (HKEx) OTC Clear subsidiary has launched a clearing service for cross currency swaps (CCS).

HKEx said OTC Clear is among the first international clearing house to provide clearing services for US dollar and offshore Renminibi.

It currently has 12 clearing members, six of which are Hong Kong subsidiaries or branches of Chinese banks, with other institutions working on clearing membership agreements.

Chief executive at HKEx, Charles Li, explained fixed income and currency market participants face increasing challenges with regulation and capital pressures when trading.

Li added “central clearing via a well-capitalised, internationally recognised clearing house,” can help ‘alleviate’ the pressures.

The service launched on Monday, with several transactions already submitted to OTC Clear via MarkitSERV, IHS Markit’s trading platform.

HKEx said a total aggregate notional value of $120 million was cleared on the first day of the launch this week. 

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Jacky Mak - a former chief financial officer of Soc Gen in Hong Kong and Taiwan - has been appointed head of OTC clearing at the Hong Kong Stock Exchange (HKEx).

Mak’s role will be to lead and develop the operations of the OTC Clearing business - a subsidiary of HKEx – effective as of 25 July this year.

Prior to joining HKEx, Mak was a director of Bank of America Merrill Lynch’s global markets division.

Former head of OTC Clearing, Kelvin Lee, has departed due to retirement after 25 years with the exchange.

Mak’s financial services experience spans 20 years, and he previously held the position of chief financial officer at Soc Gen’s Hong Kong and Taiwan investment banking unit.

He was also director of OTC product development of HSBC’s global banking and markets group in Hong Kong.

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