Tag: FX clearing

FX clearing

Eurex Makes FX Clearing Play

Eurex Clearing has announced plans to expand its Partnership Programme to cover the repo and OTC foreign exchange segments.
The business, which is owned by Deutsche Borse, says the design of the programme extension is complementary to the OTC interest rate derivatives segment, which started in January 2018. As part of its partnership programme Eurex Clearing “shares governance and economics with the most active programme participants”, meaning it is a profit sharing scheme.The new FX segment of the programme is designed to deliver the benefits of clearing to OTC FX markets, which are still largely uncleared today, the firm says.

LCH Reports Record Year as FX Stands Out

Clearing house LCH has announced record volumes across multiple clearing services in 2017, with FX leading the way by registering the greatest pace of growth across established products.
The firm says its equities, fixed income, and OTC derivatives clearing services all surpassed previous years’ clearing activity, with growth driven by the roll-out of new products, effects of regulatory change and the onboarding of new customers across the world.
LCH’s FX derivatives clearing service, ForexClear, delivered very strong growth in 2017.

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.

ForexClear Sees Record Activity in October

ForexClear, LCH Clearnet’s centrally cleared FX operation, reported record volumes in October, driven in large part by activity in Latin American currencies.
The CCP cleared $500 billion in notional in October, with over 20,000 trades cleared in just one week and almost 80,000 cleared during the entire month.
By contrast, in July less than 20,000 contracts with a notion value of less than $125 billion were cleared at the CCP.
ForexClear says that while an increase in Asia currency NDF volumes helped drive this growth, Latin American currencies saw and even greater increase in activity, with $64 billion of BRL fixing at the end of the month.

Bilateral Margining Driving Growth at LCH

Clearing house LCH says its ForexClear service has seen 10 entities turn to actively clearing FX non-deliverable forwards in the past six months and that it has experienced a “significant” rise in cleared notional and trade count in 2016, with over $220 billion in notional cleared to date in September 2016.

As of 23 September, the firm says over $1 trillion in notional has been cleared in 2016.

“The uncleared margin rules that are coming into force across the world have been a catalyst for driving eligible and appropriate derivatives trades towards central clearing,” says Daniel Maguire, LCH’s global head of rates and FX derivatives.