LCH expands FX offering
17 October 2019 London
Image: Shutterstock
LCH has expanded its deliverable foreign exchange (FX) offering to include FX forwards.
Members of the ForexClear service are now able to clear this product in eight currency pairs.
The product extension builds on last year’s launch of deliverable FX options clearing.
The product incorporates the first physical FX settlement service for cleared FX products, which LCH developed in collaboration with CLS.
Paddy Boyle, head of ForexClear at LCH, said: “Making FX Forwards available for clearing is a significant moment for the market. This initiative substantially broadens the proportion of the FX market which is able to be cleared. As a result, we’re pleased to be bringing the risk management and efficiency benefits of clearing to an even larger segment of the market.”
Tom Prickett, co-head of Europe, the Middle East and Africa rates at J.P. Morgan, commented: “The launch of cleared FX Forwards unlocks more opportunities for improved risk management and operational efficiencies. It’s always beneficial for the dealer community to have the choice and today’s announcement is an exciting step for the advancement of the FX forward market.”
Members of the ForexClear service are now able to clear this product in eight currency pairs.
The product extension builds on last year’s launch of deliverable FX options clearing.
The product incorporates the first physical FX settlement service for cleared FX products, which LCH developed in collaboration with CLS.
Paddy Boyle, head of ForexClear at LCH, said: “Making FX Forwards available for clearing is a significant moment for the market. This initiative substantially broadens the proportion of the FX market which is able to be cleared. As a result, we’re pleased to be bringing the risk management and efficiency benefits of clearing to an even larger segment of the market.”
Tom Prickett, co-head of Europe, the Middle East and Africa rates at J.P. Morgan, commented: “The launch of cleared FX Forwards unlocks more opportunities for improved risk management and operational efficiencies. It’s always beneficial for the dealer community to have the choice and today’s announcement is an exciting step for the advancement of the FX forward market.”
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