LCH.Clearnet Steps into OTC FX Clearing
LCH.Clearnet has announced that it is to provide clearing services for foreign exchange (FX).
FX non-deliverable forwards (NDFs) will be available for clearing through ForexClear, the company's new service created in collaboration with clients. The service is supported by "14 major market participants".
NDFs, which are over-the-counter (OTC) cash-settled products, will be cleared in Indian rupees, Brazilian real, Chilean pesos, Chinese yuan, Korean won and Russian ruble against the US dollar.
"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," says Gavin Wells, managing director of ForexClear.
LCH.Clearnet aims to institute a 95 percent market coverage with the addition of further currencies. The services has already launched, with clearing available between direct members. Recently, the clearing house agreed a majority stake purchase offer from the London Stock Exchange Group.
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