Citi and Eaton Vance Management have cleared the first FX cash-settled forwards at CME Group.
CME cleared the two EUR/USD trades on January 15. The exchange group currently offers clearing for 26 currency pairs of FX cash-settled forwards and 11 pairs of NDFs.
“CME Group is pleased to clear our first cash-settled forwards, which provide a new capital-efficient way for our customers to trade G10 foreign exchange. This first cash-settled trade, combined with the recent increase in our non-deliverable forward clearing volume in late 2018, allows us to work with our clients, clearing members and liquidity providers to help customers mitigate their risks through cleared solutions,” says Sean Tully, global head of financial and OTC products at CME.
“Citi is excited to execute and clear the first CME-cleared, cash-settled forwards with Eaton Vance Management, an industry milestone. With uncleared margin rules impacting buy side clients over the next two years, Citi is excited to leverage our leadership in the FX PB and clearing space to help clients execute and clear their NDFs and CSFs at CME,” comments Christopher Perkins, global head, OTC clearing and FX prime brokerage, at Citi.
“Eaton Vance Management strives to reduce the total cost of trading for our investors. We are big supporters of central clearing and now is the time for the FX marketplace to make buy side clearing of CSFs and NDFs a reality,” adds Michael O’Brien, head of global trading at Eaton Vance.