Independent clearing house LCH.Clearnet has launched foreign exchange clearing. Fourteen market participants already have been using the FX clearing services, with more expected to join in the next few weeks.
ForexClear provides clearing for FX non-deliverable forwards (NDFs), actively traded, cash settled products, between direct clearing members. Currently cleared currencies are the Brazilian real, Chilean peso, Chinese yuan, Indian rupee, Korean won and Russian ruble, all against the United States dollar. LCH.Clearnet says it will add further currencies in the future with the aim of 95% market coverage.
In response to market demand and pending regulatory changes, we are delighted to be bringing LCH.Clearnets leading risk mitigating solutions to NDFs and we will be looking to broaden the service in line with client demand, says Gavin Wells, managing director of ForexClear.
LCH.Clearnets other clearing services include SwapClear for interest rate swaps, which has cleared a total of $280 trillion OTC IRS notional outstanding in 17 currencies.
Our FX service highlights the strength and breadth of our unique OTC expertise and our commitment to providing market leading risk management solutions across a wide range of asset classes, says Ian Axe, CEO of LCH.Clearnet Group Limited. We shall continue to evolve our offering in line with client demand to ensure it offers the most effective risk management, as well as capital and operational efficiencies, to the FX marketplace.
(CG)