More options from LCH next year, as NDF volumes boom

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ForexClear launched in with a single objective: to offer global currency markets a dedicated service for clearing NDFs and other OTC foreign exchange products. Since we launched, we have experienced dramatic growth in our cleared volumes, with daily NDF volumes quadrupling in

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While the idea of moving derivatives to clearing houses seemed an obvious move to regulators, the practicalities of creating a framework for physically settled instruments is a huge mountain to climb. ForexClear has first-hand knowledge of the difficulties presented by migrating market participants from bilateral trading towards a centrally cleared world.

We anticipate a similar trajectory for FX options. LCH has also launched clearing for G10 NDF s, with Boyle highlighting this effort is the first time a firm has achieved traction in these contracts. The main users are large banks, just like in emerging markets. You need to sign in to use this feature.

FX Invest North America FX Week is proud to host its 13th annual FX Invest North America conference - the leading foreign exchange buy-side meeting for institutional investors, asset managers, corporates, and hedge funds. TCA and fair execution. The metrics that the FX industry must use. Prime-of-prime solutions — Sustainable solutions and evaluating means of access to credit in foreign exchange markets Based on a survey of global FX market participants, this white paper explores the preferences, needs and attitudes clients and the broader FX market have in relation to tiered credit intermediation.

Buy-Side Risk Management Technology Asset managers continue to face a rapidly changing operating environment. Currency Management Buy now. Browse by content type. Originally planned for launch in , options clearing has been repeatedly pushed back in order to resolve the issue of same-day liquidity settlement and guaranteed delivery. Initially, the service will be rolled out for the most liquid and high-volume currencies. In the absence of a mandate for clearing these contracts, options clearing has gained significant importance since the advent of bilateral margin rules.

Boyle is optimistic that LCH's collaboration with CLS will come to fruition next year, and he remains confident that a high proportion of ForexClear's membership will be on board when the service is launched. With greater NDF volumes coming through its doors, ForexClear's compression service, which it introduced earlier this year, will also gain traction. Click for editor's introduction, list of interviews and awards tables. You need to sign in to use this feature.

FX Invest North America FX Week is proud to host its 13th annual FX Invest North America conference - the leading foreign exchange buy-side meeting for institutional investors, asset managers, corporates, and hedge funds. TCA and fair execution.

The metrics that the FX industry must use. Prime-of-prime solutions — Sustainable solutions and evaluating means of access to credit in foreign exchange markets Based on a survey of global FX market participants, this white paper explores the preferences, needs and attitudes clients and the broader FX market have in relation to tiered credit intermediation. Buy-Side Risk Management Technology Asset managers continue to face a rapidly changing operating environment.

Currency Management Buy now. Browse by content type. It provides an independent clearing service for the registration of OTC Forward Freight Agreements FFAs for the most actively traded routes; thirteen dry and ten wet routes, as well as options on the four dry timecharter routes: Capesize, Panamax, Supramax and Handysize.

Launched in , SwapClear initially cleared plain vanilla interest rate swaps in four major currencies. The default was fully resolved well within the margin held and at no loss to other market participants. In December SwapClear launched a new Client Clearing Service, a first for the buy-side community to access clearing interest rate swaps. The service offers unique levels of security to clients and has added functionality to support the segregation of client portfolios and margin.

Since the Lehman Brothers collapse, market weaknesses have been under intense scrutiny from financial institutions and regulators alike, and therefore financial markets are currently undergoing a period of unprecedented regulatory reform. A key area of proposed legislation is mandatory central clearing for some OTC derivative instruments, including foreign exchange. ForexClear covers the most actively traded currencies in the NDF marketplace.

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ForexClear is leading the way with surging volumes of NDF trades cleared. The bank cleared its first non-deliverable forwards (NDF) trades via LCH Forexclear on behalf of non-member clients earlier this month. With the introduction of the next generation of the EU-wide regulatory framework, changes to OTC clearing include a requirement for straight-through-processing (STP). Paddy Boyle, Global Head of ForexClear, LCH, said: “We’re pleased with the strong adoption to date of this product among our active membership. Since the advent of the uncleared margin rules in , we’ve seen a tremendous surge in NDF clearing.