Compression eases capital, risk bottlenecks amid CNH swap boom

US and Chinese flags with dollar and yuan banknotes, overlaid with stock market graph

- Karen Lai
- 25 Nov 2025

Dealers say that the introduction of multilateral compression for US dollar/CNH cross-currency swaps at Hong Kong Exchanges and Clearing OTC Clear will help to relieve growing regulatory capital, margin and settlement limit pressures amid a recent boom in trading of the offshore renminbi contracts.

A first run, involving five financial institutions, was conducted by HKEX OTCC using post-trade vendor Osttra’s triReduce service in late August, with a total of $5.8 billion notional compressed. A

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