SG/Newedge Adds ForexClear to OTC Client Clearing Offering

Societe Generale Corporate & Investment Banking (SG CIB) has added LCH Clearnet’s foreign exchange clearing service, ForexClear, to its Newedge prime services business as it continues to boost its OTC client clearing offering.
By Joe Parsons(2147488729)
Societe Generale Corporate & Investment Banking (SG CIB) has added LCH Clearnet’s foreign exchange clearing service, ForexClear, to its Newedge prime services business as it continues to boost its OTC client clearing offering.

Newedge, the futures commission merchant (FCM) owned by SG CIB, has added the service as a new clearing house, allowing its clients to clear non-deliverable forwards (NDFs).

The connection to ForexClear comes as national regulators in the U.S. and Europe look to expand the central clearing mandate to include NDFs.

The addition of ForexClear is the latest boost to the Newedge OTC client clearing business, despite the exit of other banks such as BNY Mellon, RBS and State Street from the space.

“At a time when many in the industry are retrenching from OTC clearing, we are investing to add new products and new asset classes that enhance our service offering. The addition of ForexClear demonstrates the bank’s commitment to our clients and to clearing,” says Adam Cohen, global head of institutional sales, prime services, SG CIB.

SG CIB will also work with ForexClear in the U.S. as it looks to launch an electronic trading venue, also known as a swap execution facility (SEF).

Last week, Newedge hired Nick Gionfriddo as head of OTC clearing sales for North America as it looks to win the former clients of the exiting banks.

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