Clearing house LCH says it is seeing “good momentum” in its
ForexClear service heading into the second half of the year.
The firm says that as at May 2017 it has now cleared more
that $10 trillion in notional value since inception. More pertinently, it says
it has cleared more notional value ($3.8 trillion) in the first five months of
2017 than it did in the whole of 2016 ($3.2 trillion).
As well as a 200% increase in client accounts in 2017, LCH
says 18 May 2017 set a new record for number of trades cleared, with 9,336
processed in a single day. That day saw currency market activity rocket as
political events in the US shook the market, HotspotFX and FastMatchFX both saw
volume levels well above average.
“Since the uncleared margin requirements were introduced in
September 2016, ForexClear has seen a surge in member and client activity,
resulting in these record volumes,” says Paddy Boyle, global head of ForexClear.
“Central clearing allows users to benefit from reduced capital, margin and
counterparty risk costs, as well as reducing operational costs and risks. We’re
pleased with the continued success of the service and look forward to expanding
our product offering to G10 NDFs and FX options soon.”