MARKET INFRASTRUCTURE

JP Morgan clears first trades with LCH ForexClear

FX is the latest addition to JP Morgan’s OTC clearing business as it looks to provide a platform across all assets.

By Hayley McDowell hayley.mcdowell@strategic-i.com August 31, 2017 10:46 AM GMT

JP Morgan has cleared its first non-deliverable forward (NDF) trades with LCH ForexClear since the implementation of uncleared margin rules.

JP Morgan said the addition of FX to its over-the-counter clearing signals its commitment to provide clients with a platform across all asset classes.

The launch aims to provide the bank’s clients with full transparency of clearing from the point of execution through to settlement.

Head of global clearing at JP Morgan, Nick Rustad, explained it is also focused on the automation of flow, which is key to its customers.

Rustad described the launch as “a joint effort across execution and clearing businesses, as part of JP Morgan’s commitment to support non-member clients in the cleared FX space.”

Paddy Boyle, global head of ForexClear at LCH, added the firm has seen record volume growth since the introduction of the uncleared margin rules.

Working alongside JP Morgan, he added, will allow its clients to “further extend the significant margin, capital, risk and operational benefits of clearing to the broader FX community”.