LCH.Clearnet Limited’s ForexClear service has exceeded $50 billion in cleared notional of FX NDFs since launching only four months ago on 19 March 2012.
With 14 members clearing across six currencies, the service has seen a marked acceleration in daily volumes in the last month as FX market participants have become accustomed to the processes around clearing. Market volatility in many currencies cleared has added to this, demonstrating the benefit that counterparty risk mitigation and daily exchange of mark-to-market can bring.
Utilising the unique OTC clearing experience of other LCH.Clearnet services, Swapclear and CDSClear, ForexClear delivers a robust risk management approach, combined with fully automated, scalable STP service.
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Gavin Wells, CEO, ForexClear said: “I am delighted that our members have realised the benefits of clearing so soon after launch. With over 4,000 tickets novated, and with so many members having proven the service, we are now preparing to extend FX NDF clearing to clients. With the additional five currencies being added to the service in the coming weeks, we will provide 95% market coverage and look forward to bringing the benefits of clearing to the entire market.”
The first global clearing service for foreign exchange, ForexClear will shortly launch a client clearing solution to provide clients with robust protection and benefits such as segregation of margin and collateral and portability of client positions. The client offering is subject to regulatory approvals.
ForexClear clears NDFs in six of the most actively traded currencies, Brazilian Real, Chilean Peso, Chinese Yuan, Indian Rupee, Korean Won, Russian Ruble, and will extend these to include Colombian Peso, Indonesian Rupiah, Malaysian Ringgit, Philippine Peso & Taiwan Dollar in the coming weeks.