LCH.Clearnet officially launches ForexClear, its forex clearing service
As the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term market is maturing and becoming more 'institutionalized' and liquid clearing becomes one of the major issues facing this market. LCH's ForexClear will handle clearing of FX NDFs through its 14 founding members. ForexClear was authorized by the FSA.
LCH.Clearnet Limited (LCH.Clearnet), the world's leading independent multi asset class clearing house, today began clearing foreign exchange (FX). The service is supported by 14 major market participants who have been actively involved in its establishment. A number of additional participants are scheduled to begin clearing in the coming weeks.
The new service, ForexClear provides clearing for FX Non Deliverable Forwards (NDFs) and was designed in close collaboration with our members. The service has launched with clearing between direct clearing members, whilst actively consulting with clients to deliver a full clearing service to other current and prospective clearing members, and their global clients in due course.
NDFs are cash settled products, actively traded in a range of high growth economy currencies. From launch the service will clear NDFs in the following currencies - Brazilian Real, Chilean Peso, Chinese Yuan, Indian Rupee, Korean Won and Russian Ruble all against the United States Dollar. Further currencies are being added to the service with the aim to provide 95% market coverage.
Gavin Wells, Managing Director, ForexClear, said; “In response to market demand and pending regulatory changes, we are delighted to be bringing LCH.Clearnet’s leading risk mitigating solutions to NDFs and we will be looking to broaden the service in line with client demand.”
ForexClear will build upon LCH.Clearnet’s 12 years of global OTC clearing experience. SwapClear, its Interest Rate Swap (IRS) service, has a proven track record of successfully mitigating risk for its users with over $280 trillion OTC IRS notional outstanding in 17 currencies. In 2008 LCH.Clearnet successfully resolved Lehman Brothers’ $9 trillion OTC IRS default and is now able to extend its unique and robust Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term methodology to the FX market through ForexClear.
Ian Axe, CEO, LCH.Clearnet Group Limited, said; “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. We shall continue to evolve our offering in line with client demand to ensure it offers the most
As the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term market is maturing and becoming more 'institutionalized' and liquid clearing becomes one of the major issues facing this market. LCH's ForexClear will handle clearing of FX NDFs through its 14 founding members. ForexClear was authorized by the FSA.
LCH.Clearnet Limited (LCH.Clearnet), the world's leading independent multi asset class clearing house, today began clearing foreign exchange (FX). The service is supported by 14 major market participants who have been actively involved in its establishment. A number of additional participants are scheduled to begin clearing in the coming weeks.
The new service, ForexClear provides clearing for FX Non Deliverable Forwards (NDFs) and was designed in close collaboration with our members. The service has launched with clearing between direct clearing members, whilst actively consulting with clients to deliver a full clearing service to other current and prospective clearing members, and their global clients in due course.
NDFs are cash settled products, actively traded in a range of high growth economy currencies. From launch the service will clear NDFs in the following currencies - Brazilian Real, Chilean Peso, Chinese Yuan, Indian Rupee, Korean Won and Russian Ruble all against the United States Dollar. Further currencies are being added to the service with the aim to provide 95% market coverage.
Gavin Wells, Managing Director, ForexClear, said; “In response to market demand and pending regulatory changes, we are delighted to be bringing LCH.Clearnet’s leading risk mitigating solutions to NDFs and we will be looking to broaden the service in line with client demand.”
ForexClear will build upon LCH.Clearnet’s 12 years of global OTC clearing experience. SwapClear, its Interest Rate Swap (IRS) service, has a proven track record of successfully mitigating risk for its users with over $280 trillion OTC IRS notional outstanding in 17 currencies. In 2008 LCH.Clearnet successfully resolved Lehman Brothers’ $9 trillion OTC IRS default and is now able to extend its unique and robust Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term methodology to the FX market through ForexClear.
Ian Axe, CEO, LCH.Clearnet Group Limited, said; “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. We shall continue to evolve our offering in line with client demand to ensure it offers the most