First Compression Operation Carried Out Successfully by OSTTRA triReduce on HKEX Platform
In a significant development for the financial industry, OSTTRA's market-leading portfolio compression service, OSTTRA triReduce, has successfully completed its first compression run for USD/CNH cross currency swaps (CCS) cleared through HKEX's OTC Clear.
The historic event took place on August 28, 2025, with five prominent financial institutions - Bank of China (Hong Kong), Crédit Agricole CIB, HSBC, Standard Chartered, Citibank, and JPMorgan - participating in the pilot run.
The collaboration between OSTTRA and HKEX comes amidst increasing demand from market participants for compression services in Asia. The pilot compression run for USD/CNH Cross Currency Swaps marks a significant step in enhancing capital and operational efficiency for these participating institutions.
Zhang Chengdong, Head of Trading, Deputy General Manager of Global Markets at Bank of China (Hong Kong), expressed his satisfaction with the compression for USD/CNH cross currency swaps, stating that it significantly improves their capital and operational efficiency. John Luk, Head of Emerging Markets Trading for Greater China at Crédit Agricole CIB, also expressed his pleasure with the introduction of the inaugural cleared USD/CNH CCS compression service to the local market. Crédit Agricole CIB, an active player in HKEX's OTC Clear, considers the compression service for the USD/CNH pair as a key client offering of their bank.
The first compression run resulted in a total of $5.8bn in notional value being compressed. This is a significant achievement, considering that the outstanding volume of USD/CNH CCS cleared on HKEX's OTC Clear was $255.2bn in July 2025.
OSTTRA triReduce compression runs offer market participants a way to efficiently reduce costs and risks associated with this heavily traded contract. The company has seen a significant increase in compression volume in Asia-Pacific (APAC) currencies, with the compressed notional value more than doubling in the first six months of 2025 compared to the same period last year. The notional value of APAC currency contracts closed in 2025 to date surpassed $33.1tn, more than twice the amount seen for these currencies across the whole of 2023.
Erik Petri, Head of Optimisation at OSTTRA, stated that the addition of cleared USD/CNH CCS to their compression service and HKEX's OTC Clear as a compression venue further establishes OSTTRA as the leading provider of compression in the Asia Pacific market.
Building on the successful first run, OSTTRA intends to conduct another compression run for the USD/CNH pair with a larger group of market participants in the coming months on HKEX's OTC Clear. This continued expansion of compression services in Asia is expected to bring further efficiencies and cost savings to the financial industry.
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