Bloomberg announced that the Luxembourg branch of the Industrial and Commercial Bank of China (ICBC) successfully completed its first Swap Connect transaction in Europe, using Bloomberg's Swap Connect solution. This follows ICBC Dubai completing the first Swap Connect trade in the Middle East using Bloomberg, and marks a significant milestone in the expansion of Swap Connect – further connecting international investors with China's onshore derivatives markets.

The trade underscores the accelerating adoption of Swap Connect as a channel for offshore institutions to manage onshore interest rate risk. It also highlights the accessibility of China's financial markets under the initiative jointly developed by Hong Kong and mainland regulators.

"Completing our first Swap Connect trade in Europe is a landmark for ICBC as we expand our global derivatives offering," said Chen ZHAO, Deputy Head of Financial Market at ICBC Luxembourg Branch. "This transaction demonstrates both the growing demand from international clients to hedge China exposure and our ability to provide them with robust, efficient access to the onshore RMB market."

"We are delighted to strengthen our collaboration with ICBC who have been a first mover with Swap Connect in both Europe and the Middle East," said Andrew Beacham, Global Head of Emerging Markets Trading Product at Bloomberg. "We are committed to helping to deepen liquidity and broaden foreign participation in China's bond markets by equipping participants with the tools they need to hedge risk effectively. We look forward to continuing to lead the way with supporting more institutions across regions with accessing Swap Connect."

Swap Connect, launched in May 2023, allows offshore investors to participate in Mainland China's OTC derivatives markets. Bloomberg is an approved third-party electronic trading solutions provider by the People's Bank of China (PBOC) for northbound Swap Connect. Through the Bloomberg Terminal, eligible offshore investors can access Bloomberg's Swap Connect solution to trade RMB interest rate swaps (IRS) via the program.