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Exchanges & Clearing

Seven Market Participants Agree to Clear CME OTC NDFs CME group has announced that seven market participants have agreed that they intend to clear OTC FX non-deliverable forwards (NDFs) by the end of Q1 2018. “As more clients and liquidity providers are affected by uncleared margin rules, additional market participants clearing NDFs will provide greater access to the capital efficiencies of OTC FX clearing for clients around the world. Emerging market currencies provide a unique opportunity to cross-margin NDFs with non-deliverable IRS cleared at CME, offering potential initial margin savings of up to 51%,” says CME in a statement issued The seven market particpants involved are: BBVA, Citi, Itau Unibanco, NatWest Markets, Santander, Standard Chartered and XTX Markets.
Nex Offers Clearing Connectivity for NDFs Nex Optimisation is now providing central clearing connectivity for its FX risk mitigation service in non-deliverable forwards (NDFs). The clearing connectivity capability enables dealers to flag trades that are part of a risk mitigation cycle for automatic submission to a central counterparty clearing house (CCP). This means that clients of Nex’s Reset FX risk mitigation service can now have their trades be submitted directly for clearing rather than having to be re-submitted for secondary matching prior to communication to a CCP. 
CME to Launch Bitcoin Futures CME Group plans to launch bitcoin futures in the fourth quarter of 2017, pending all relevant regulatory review periods. The new contract will be cash-settled, based on the CME CF Bitcoin Reference Rate (BRR), which serves as a once-a-day reference rate of the US dollar price of bitcoin.  Bitcoin futures will be listed on and subject to the rules of CME. "Given increasing client interest in the evolving cryptocurrency markets, we have decided to introduce a bitcoin futures contract," says Terry Duffy, CME group chairman and CEO.  "As the world's largest regulated FX marketplace, CME Group is the natural home for this new vehicle that will provide investors with transparency, price discovery and risk transfer capabilities."
CME Launches Wednesday Weekly FX Options CME Group has launched Wednesday Weekly FX options (Wednesday options). Wednesday options will be available in premium quoted and volatility quoted European style options with a 2 p.m. CDT fix on five major currency pairs: AUD/USD; GBP/USD; CAD/USD; EUR/USD; JPY/USD.  These Wednesday options will be available for trading and clearing on October 30, 2017, pending regulatory approval. CME Group has launched Wednesday Weekly FX options (Wednesday options), which expire on Friday. Wednesday options will be available in premium quoted and volatility quoted European style options with a 2 p.m. CDT fix on five major currency pairs: AUD/USD; GBP/USD; CAD/USD; EUR/USD; JPY/USD.  These Wednesday options will be available for trading and clearing on October 30, 2017, pending regulatory approval. Weekly options are designed to enable market participants to more precisely manage their currency risk during the week. Existing FX weekly options average daily volume reached a new record of 31,990 contracts in September 2017, which is up 76.6% compared to the same time period last year. 
SGX Achieves FX Record Singapore Exchange (SGX) has announced a new daily volume record for its SGX INR/USD futures contract. The exchange says it handled a total of 108,417 contracts on 22 September 2017, translating to a notional value of $3.34 billion. The INR/USD is SGX’s most actively traded FX futures contract, and recent volume growth has extended its market share to more than 40%, SGX adds. SGX also recorded its highest ever daily volume for its USD/CNH on 8 September 2017, with 25,857 contracts traded.
CME Launches FX Link to Create OTC/Futures CLOB CME Group says it will launch spot FX basis spreads called CME FX Link on its Globex electronic trading platform. The exchange group says this will create the first ever central limit order book between the OTC spot FX and CME Group FX futures markets. It is expected to launch in Q1 2018 and, CME says, will provide OTC FX market participants with a more efficient way to access and use FX futures as part of their overall trading activity.
First Trades Completed on LCH SwapAgent LCH SwapAgent, a service for the non-cleared derivatives market, says that it has processed its first trades. Citi and Deutsche Bank were the counterparties to the Swiss franc-denominated interest rate swap and euro-denominated inflation swap. The trades were processed through MarkitServ. LCH SwapAgent is available for market participants trading non-cleared OTC interest rate derivatives. LCH says acting as an independent calculation agent, it calculates and enables customers to exchange bilateral margin and settlement payments, without the need for a central counterparty.
Moex Launches FX Fixing Instruments Moscow Exchange (Moex) is now offering instruments to trade at the Moex FX USD/RUB and EUR/RUB fixing prices with clearing and settlement via its clearinghouse, NCC Clearing Bank. The new offering aims to provide Russian and international banks with a hedge against the currency risk of OTC trading in rouble NDF with the net return calculated at maturity as the difference between the forward rate and the Moex fixing rate. The fixing instruments, USDRUB_FIX0 and EURRUB_FIX0, are traded from 10:00-12:15 MSK on days when the Moex USD/RUB FX Fixing and Moex EUR/RUB FX Fixing (Т+0) are computed.
ForexClear Sets New Record in August LCH says that its ForexClear service processed over $1 trillion in notional over the course of August, setting a new monthly record. LCH says ForexClear has seen demand for its NDF clearing service “significantly increase” since the introduction of the uncleared margin rules in September 2016. The service now has 28 clearing members and is seeing growing interest from buy-side clients, according to the clearinghouse. In addition, the service ended August with a record $1.3 trillion outstanding notional and set a new daily record for notional cleared on 29 August, processing over $65 billion.
CME Reduces Minimum Amounts on VQOs CME Group has reduced the minimum order quantity for Volatility-Quoted Options (VQO) ahead of the scheduled launch on August 20. The new minimum amounts are in production at 10 lots in the euro, Japanese yen, sterling, Australian dollar, Swiss Franc and Canadian dollar contracts. In conjunction with this change, CME has also reduced the minimum quantity requirement to trigger a triangulation execution to 10 for all VQO currencies. The triangulation functionality was rolled out by CME last year in an effort to boost liquidity in its FX options products.