Decoding the NAFMII Swap Connect Cleared Derivatives Agreement

After much market anticipation, the NAFMII Swap Connect Cleared Derivatives Agreement (2024 Version) (the “Swap Connect CDA”) has been published on 1 April 2024. The Swap Connect CDA is a welcoming addition to the suite of trading documents eligible for Swap Connect purposes, and is the only eligible Swap Connect trading document that is specifically tailored for Swap Connect.

This bulletin looks into the benefit of having written trading documentation and more specifically, signing the Swap Connect CDA. It also offers an overview of the Swap Connect CDA and its intricacies that market participants should consider.

We are pleased to have advised Hong Kong Exchanges and Clearing Limited Group on the Swap Connect CDA, who have worked together with NAFMII to formulate the Swap Connect CDA.