CME Group, the world’s leading and most diverse derivatives marketplace, announced today that on April 27 the company cleared its first customer FX Over-the-Counter Non Deliverable Forward (NDF) trade, further expanding the company’s market leading OTC solution across multiple asset classes. The currency cleared was the Brazilian Real.
The company also offers NDF clearing for the Chinese Renminbi Yuan, Philippine Peso, Malaysian Ringgit, Indian Rupee, Korean Won, Taiwan Dollar, Chilean Peso, Colombian Peso, Peruvian Sol, Russian Ruble and Indonesian Rupiah.
“As the leader in cleared OTC U.S. customer volume, clearing our first customer FX NDF trade adds to our already robust, multi-asset class OTC clearing service,” said Laurent Paulhac, CME Group Managing Director, OTC Products & Services. “Clients see a lot of value in leveraging the same risk, operational and legal infrastructure across interest rate swaps, credit default swaps and foreign exchange. We continue to work with buy-side, sell-side and clearing member firms to further develop our overall OTC offering and FX has become a key priority for clients in the last few months.”
“We are delighted to be working with CME Group to expand our OTC clearing footprint into FX,” said Martine Bond, Head of FX Prime Brokerage and Clearing at Morgan Stanley. “Our world class OTC Clearing and FX Prime Brokerage teams are at the forefront of innovation as well as market leaders providing solutions assisting our clients in this evolving market.”
The Brazilian Real is currently trading at 1.885 against the greenback.
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CME Group has been working with executing dealers, clearing members, clients and affirmation platforms to ensure the company’s offering meets the needs of all market participants. Initial clearing members working toward an end-to-end fully automated clearing solution later this quarter include Barclays, Citigroup, Credit Suisse, JP Morgan Chase and Morgan Stanley.
As the world’s leading and most diverse derivatives marketplace, CME Group ( www.cmegroup.com ) is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through its CME Globex® electronic trading platform and its trading facilities in New York and Chicago. CME Group also operates CME Clearing, one of the world’s leading central counterparty clearing providers, which offers clearing and settlement services for exchange-traded contracts, as well as for over-the-counter derivatives transactions through CME ClearPort®. These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk in both listed and over-the-counter derivatives markets.
CME Group is a trademark of CME Group Inc. The Globe Logo, CME, Globex and Chicago Mercantile Exchange are trademarks of Chicago Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are registered trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All other trademarks are the property of their respective owners.
Brazil has a strong capital markets system with the local stocks and futures exchange making it one of the top 5 global exchanges as per daily trade volume.
Margin FX is not regulated as an asset class by CVM (Brazilian regulator).