What is a Northbound Interest Rate Swap (NB IRS)?
A NB IRS is a deliverable Renminbi (CNY) IRS that the offshore investors can clear through OTC clear via the central counterparties link established between OTC Clear and Shanghai Clearing House (SHCH) under Swap Connect.
OTC Clear NB IRS Product Coverage
OTC Clear is the first offshore clearing house to provide clearing services for deliverable CNY IRS (SHIBOR Overnight, SHIBOR 3-Month and 7-day repo) to offshore investors outside Mainland China. Offshore investors will face OTC Clear once the trade is cleared.
A summary of clearable NB IRS products is listed below and the details of product eligibility requirements can be found in the OTC Clear Clearing Procedures.
Instrument
|
Currencies |
Floating Rate Option |
Maximum Tenor |
Original Northbound Standard Rates Derivatives Transactions
|
CNY (Renminbi)
|
SHIBOR Overnight
|
3 years |
|
SHIBOR 3-Month
|
10 years |
|
7-day Repo
|
10 years |