UK based clearing house, LCH Clearnet has announced that they have cleared more than $500 billion in FX NDFs through its ForexClear product since its launch in March 2012. Demand for NDFs has risen steadily over the past several years. The demand has been attributed to an increase of traders desiring exposure to emerging markets currencies as well as a rise of cross border business increasing in these regions. ForexClear provides NDF clearing services in the Brazilian Real, Russian Ruble, Indian Rupee, Chinese Yuan, Chilean Peso, Korean Won, Colombian Peso, Indonesian Rupiah, Malaysian Ringgit, Taiwanese Dollar, and Philippines Peso.
LCH.Clearnet’s ForexClear reaches $500 bn notional cleared
- SDR reporting for cleared FX trades now live -
28 January 2013
LCH.Clearnet Ltd (LCH.Clearnet), the multi-national clearing house’s UK-based CCP, has cleared more than $500 billion in notional of FX NDFs through its ForexClear service since launch in March 2012. The volumes were driven by record figures of $207 billion in the fourth quarter.
The success of ForexClear has been fuelled by increased demand for robust clearing solutions as leading FX market participants seek to manage their counterparty risk exposures. 14 members benefit from ForexClear’s world-class risk management framework and broad offering of 11 currencies.
The service was designed in close collaboration with leading FX market participants and global regulators to address regulatory developments every step of the way. In a market first, LCH.Clearnet recently began reporting cleared FX trades to a swap data repository (SDR) run by the Depository Trust and Clearing Corporation (DTCC).
The move is in line with the Commodity Futures Trading Commission’s (CFTC) regulation to mandate the reporting and recordkeeping of all FX trades, except spot, through a registered SDR. ForexClear facilitates market transparency by submitting all data throughout the life of a cleared FX trade to the SDR within seconds of novation.
Gavin Wells, CEO, ForexClear said: “The strong growth in volumes cleared through ForexClear indicates that FX participants have full confidence in our offering and we are very proud of the outstanding progress made since launch just 11 months ago. Furthermore, we remain fully committed to supporting the ambitions of global regulators, as demonstrated by our timely delivery of reliable and comprehensive FX data reporting.”
ForexClear’s client clearing business, which has now received regulatory approval, is set to launch shortly in line with member and client demand. This service enhancement enables clients to meet regulatory obligations whilst giving them the benefits of quality risk management and superior protection through segregation of margin collateral.
To view the press release online click here.
The LCH.Clearnet Group is a leading international clearing house, serving major exchanges and platforms as well as a range of OTC markets. LCH.Clearnet’s world-class risk management framework provides the markets with exceptional levels of protection. Both the soundness of its risk management approach and the resilience of its systems have been proven in recent times. As demand for robust clearing services continues to grow, LCH.Clearnet is committed to setting and maintaining the highest standards across all asset classes cleared. For more information on LCH.Clearnet visit www.lchclearnet.com/media_centre
Contact: Rachael Harper +44 207 426 7175