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. The latest phase of the uncleared
margin rules came into force on 1 September 2017.
“The uncleared margin rules continue to be a key driver of
clearing activity at ForexClear and we are delighted to have passed this
significant milestone in August,” says Paddy Boyle, global head of ForexClear,
LCH. “These record volumes demonstrate that the margin, capital, risk and
operational efficiencies that clearing brings to the market are proving
persuasive to ever more market participants. We look forward to welcoming more
in the months and years ahead.”
ForexClear is expanding its product offering to launch
clearing of G10 NDFs and physically delivered FX Options later this year.